Correlation Between Eagle Veterinary and Jinro Distillers
Can any of the company-specific risk be diversified away by investing in both Eagle Veterinary and Jinro Distillers 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 Jinro Distillers 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 Jinro Distillers Co, you can compare the effects of market volatilities on Eagle Veterinary and Jinro Distillers 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 Jinro Distillers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Veterinary and Jinro Distillers.
Diversification Opportunities for Eagle Veterinary and Jinro Distillers
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eagle and Jinro is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Veterinary Technology and Jinro Distillers Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinro Distillers 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 Jinro Distillers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinro Distillers has no effect on the direction of Eagle Veterinary i.e., Eagle Veterinary and Jinro Distillers go up and down completely randomly.
Pair Corralation between Eagle Veterinary and Jinro Distillers
Assuming the 90 days trading horizon Eagle Veterinary Technology is expected to under-perform the Jinro Distillers. In addition to that, Eagle Veterinary is 2.36 times more volatile than Jinro Distillers Co. It trades about -0.03 of its total potential returns per unit of risk. Jinro Distillers Co is currently generating about 0.15 per unit of volatility. If you would invest 1,638,602 in Jinro Distillers Co on October 30, 2024 and sell it today you would earn a total of 81,398 from holding Jinro Distillers Co or generate 4.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Veterinary Technology vs. Jinro Distillers Co
Performance |
| Timeline |
| Eagle Veterinary Tec |
| Jinro Distillers |
Eagle Veterinary and Jinro Distillers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Veterinary and Jinro Distillers
The main advantage of trading using opposite Eagle Veterinary and Jinro Distillers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Veterinary position performs unexpectedly, Jinro Distillers 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 Jinro Distillers will offset losses from the drop in Jinro Distillers' long position.| Eagle Veterinary vs. Nice Information Telecommunication | Eagle Veterinary vs. Seoul Food Industrial | Eagle Veterinary vs. FOODWELL Co | Eagle Veterinary vs. Sempio Foods Co |
| Jinro Distillers vs. Foodnamoo | Jinro Distillers vs. Seoul Food Industrial | Jinro Distillers vs. Sungmoon Electronics Co | Jinro Distillers vs. Anam Electronics Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |