Correlation Between Eagon Industrial and Pyung Hwa
Can any of the company-specific risk be diversified away by investing in both Eagon Industrial and Pyung Hwa at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eagon Industrial and Pyung Hwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagon Industrial Co and Pyung Hwa Industrial, you can compare the effects of market volatilities on Eagon Industrial and Pyung Hwa and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eagon Industrial with a short position of Pyung Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagon Industrial and Pyung Hwa.
Diversification Opportunities for Eagon Industrial and Pyung Hwa
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagon and Pyung is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eagon Industrial Co and Pyung Hwa Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pyung Hwa Industrial and Eagon Industrial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eagon Industrial Co are associated (or correlated) with Pyung Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pyung Hwa Industrial has no effect on the direction of Eagon Industrial i.e., Eagon Industrial and Pyung Hwa go up and down completely randomly.
Pair Corralation between Eagon Industrial and Pyung Hwa
Assuming the 90 days trading horizon Eagon Industrial Co is expected to generate 0.56 times more return on investment than Pyung Hwa. However, Eagon Industrial Co is 1.79 times less risky than Pyung Hwa. It trades about -0.05 of its potential returns per unit of risk. Pyung Hwa Industrial is currently generating about -0.48 per unit of risk. If you would invest 502,000 in Eagon Industrial Co on September 4, 2024 and sell it today you would lose (5,000) from holding Eagon Industrial Co or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagon Industrial Co vs. Pyung Hwa Industrial
Performance |
| Timeline |
| Eagon Industrial |
| Pyung Hwa Industrial |
Eagon Industrial and Pyung Hwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagon Industrial and Pyung Hwa
The main advantage of trading using opposite Eagon Industrial and Pyung Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagon Industrial position performs unexpectedly, Pyung Hwa can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pyung Hwa will offset losses from the drop in Pyung Hwa's long position.| Eagon Industrial vs. Dongbu Insurance Co | Eagon Industrial vs. BNK Financial Group | Eagon Industrial vs. Korean Reinsurance Co | Eagon Industrial vs. Daewoo Engineering Construction |
| Pyung Hwa vs. AptaBio Therapeutics | Pyung Hwa vs. Daewoo SBI SPAC | Pyung Hwa vs. Dream Security co | Pyung Hwa vs. Microfriend |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |