Correlation Between Eagle Veterinary and Samlip General
Can any of the company-specific risk be diversified away by investing in both Eagle Veterinary and Samlip General 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 Eagle Veterinary and Samlip General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Veterinary Technology and Samlip General Foods, you can compare the effects of market volatilities on Eagle Veterinary and Samlip General 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 Eagle Veterinary with a short position of Samlip General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Veterinary and Samlip General.
Diversification Opportunities for Eagle Veterinary and Samlip General
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eagle and Samlip is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Veterinary Technology and Samlip General Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samlip General Foods and Eagle Veterinary 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 Eagle Veterinary Technology are associated (or correlated) with Samlip General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samlip General Foods has no effect on the direction of Eagle Veterinary i.e., Eagle Veterinary and Samlip General go up and down completely randomly.
Pair Corralation between Eagle Veterinary and Samlip General
Assuming the 90 days trading horizon Eagle Veterinary Technology is expected to under-perform the Samlip General. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Veterinary Technology is 1.0 times less risky than Samlip General. The stock trades about -0.03 of its potential returns per unit of risk. The Samlip General Foods is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,795,634 in Samlip General Foods on October 24, 2024 and sell it today you would earn a total of 89,366 from holding Samlip General Foods or generate 1.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Veterinary Technology vs. Samlip General Foods
Performance |
| Timeline |
| Eagle Veterinary Tec |
| Samlip General Foods |
Eagle Veterinary and Samlip General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Veterinary and Samlip General
The main advantage of trading using opposite Eagle Veterinary and Samlip General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Veterinary position performs unexpectedly, Samlip General 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 Samlip General will offset losses from the drop in Samlip General's long position.| Eagle Veterinary vs. Phoenix Materials Co | Eagle Veterinary vs. Kolon Plastics | Eagle Veterinary vs. LS Materials | Eagle Veterinary vs. Ecoplastic |
| Samlip General vs. E Investment Development | Samlip General vs. Daejung Chemicals Metals | Samlip General vs. CKH Food Health | Samlip General vs. Lotte Chilsung Beverage |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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