Correlation Between Kbi Metal and Eagle Veterinary
Can any of the company-specific risk be diversified away by investing in both Kbi Metal and Eagle Veterinary 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 Kbi Metal and Eagle Veterinary into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kbi Metal Co and Eagle Veterinary Technology, you can compare the effects of market volatilities on Kbi Metal and Eagle Veterinary 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 Kbi Metal with a short position of Eagle Veterinary. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kbi Metal and Eagle Veterinary.
Diversification Opportunities for Kbi Metal and Eagle Veterinary
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kbi and Eagle is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Kbi Metal Co and Eagle Veterinary Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Veterinary Tec and Kbi Metal 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 Kbi Metal Co are associated (or correlated) with Eagle Veterinary. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Veterinary Tec has no effect on the direction of Kbi Metal i.e., Kbi Metal and Eagle Veterinary go up and down completely randomly.
Pair Corralation between Kbi Metal and Eagle Veterinary
Assuming the 90 days trading horizon Kbi Metal Co is expected to generate 2.43 times more return on investment than Eagle Veterinary. However, Kbi Metal is 2.43 times more volatile than Eagle Veterinary Technology. It trades about 0.26 of its potential returns per unit of risk. Eagle Veterinary Technology is currently generating about -0.06 per unit of risk. If you would invest 199,000 in Kbi Metal Co on October 25, 2024 and sell it today you would earn a total of 34,000 from holding Kbi Metal Co or generate 17.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kbi Metal Co vs. Eagle Veterinary Technology
Performance |
| Timeline |
| Kbi Metal |
| Eagle Veterinary Tec |
Kbi Metal and Eagle Veterinary Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kbi Metal and Eagle Veterinary
The main advantage of trading using opposite Kbi Metal and Eagle Veterinary positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kbi Metal position performs unexpectedly, Eagle Veterinary 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 Eagle Veterinary will offset losses from the drop in Eagle Veterinary's long position.| Kbi Metal vs. PH Tech Co | Kbi Metal vs. V One Tech Co | Kbi Metal vs. Ssangyong Materials Corp | Kbi Metal vs. LAKE MATERIALS LTD |
| Eagle Veterinary vs. Kbi Metal Co | Eagle Veterinary vs. Daejung Chemicals Metals | Eagle Veterinary vs. Heungkuk Metaltech CoLtd | Eagle Veterinary vs. Duksan Hi Metal |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |