Correlation Between Eagon Industrial and Namhwa Industrial
Can any of the company-specific risk be diversified away by investing in both Eagon Industrial and Namhwa Industrial 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 Namhwa Industrial 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 Namhwa Industrial Co, you can compare the effects of market volatilities on Eagon Industrial and Namhwa Industrial 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 Namhwa Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagon Industrial and Namhwa Industrial.
Diversification Opportunities for Eagon Industrial and Namhwa Industrial
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagon and Namhwa is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eagon Industrial Co and Namhwa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namhwa 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 Namhwa Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namhwa Industrial has no effect on the direction of Eagon Industrial i.e., Eagon Industrial and Namhwa Industrial go up and down completely randomly.
Pair Corralation between Eagon Industrial and Namhwa Industrial
Assuming the 90 days trading horizon Eagon Industrial Co is expected to under-perform the Namhwa Industrial. In addition to that, Eagon Industrial is 1.3 times more volatile than Namhwa Industrial Co. It trades about -0.08 of its total potential returns per unit of risk. Namhwa Industrial Co is currently generating about -0.07 per unit of volatility. If you would invest 650,000 in Namhwa Industrial Co on August 25, 2024 and sell it today you would lose (119,000) from holding Namhwa Industrial Co or give up 18.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagon Industrial Co vs. Namhwa Industrial Co
Performance |
| Timeline |
| Eagon Industrial |
| Namhwa Industrial |
Eagon Industrial and Namhwa Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagon Industrial and Namhwa Industrial
The main advantage of trading using opposite Eagon Industrial and Namhwa Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagon Industrial position performs unexpectedly, Namhwa Industrial 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 Namhwa Industrial will offset losses from the drop in Namhwa Industrial's long position.| Eagon Industrial vs. AptaBio Therapeutics | Eagon Industrial vs. Daewoo SBI SPAC | Eagon Industrial vs. Dream Security co | Eagon Industrial vs. Microfriend |
| Namhwa Industrial vs. Hanjinkal | Namhwa Industrial vs. Busan Industrial Co | Namhwa Industrial vs. Busan Ind | Namhwa Industrial vs. Mirae Asset Daewoo |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |