Correlation Between Eagle Veterinary and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Eagle Veterinary and Mirae Asset 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 Mirae Asset 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 Mirae Asset Daewoo, you can compare the effects of market volatilities on Eagle Veterinary and Mirae Asset 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 Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Veterinary and Mirae Asset.
Diversification Opportunities for Eagle Veterinary and Mirae Asset
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagle and Mirae is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Veterinary Technology and Mirae Asset Daewoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirae Asset Daewoo 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 Mirae Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirae Asset Daewoo has no effect on the direction of Eagle Veterinary i.e., Eagle Veterinary and Mirae Asset go up and down completely randomly.
Pair Corralation between Eagle Veterinary and Mirae Asset
Assuming the 90 days trading horizon Eagle Veterinary is expected to generate 9.73 times less return on investment than Mirae Asset. But when comparing it to its historical volatility, Eagle Veterinary Technology is 3.61 times less risky than Mirae Asset. It trades about 0.02 of its potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 427,000 in Mirae Asset Daewoo on August 29, 2024 and sell it today you would earn a total of 14,500 from holding Mirae Asset Daewoo or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Veterinary Technology vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Eagle Veterinary Tec |
| Mirae Asset Daewoo |
Eagle Veterinary and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Veterinary and Mirae Asset
The main advantage of trading using opposite Eagle Veterinary and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Veterinary position performs unexpectedly, Mirae Asset 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 Mirae Asset will offset losses from the drop in Mirae Asset's long position.| Eagle Veterinary vs. AnterogenCoLtd | Eagle Veterinary vs. Busan Industrial Co | Eagle Veterinary vs. Busan Ind | Eagle Veterinary vs. Shinhan WTI Futures |
| Mirae Asset vs. Hana Technology Co | Mirae Asset vs. Daejung Chemicals Metals | Mirae Asset vs. PJ Metal Co | Mirae Asset vs. Eagle Veterinary Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |