Correlation Between Eagle Veterinary and Iljin Display
Can any of the company-specific risk be diversified away by investing in both Eagle Veterinary and Iljin Display 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 Iljin Display 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 Iljin Display, you can compare the effects of market volatilities on Eagle Veterinary and Iljin Display 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 Iljin Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Veterinary and Iljin Display.
Diversification Opportunities for Eagle Veterinary and Iljin Display
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eagle and Iljin is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Veterinary Technology and Iljin Display in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iljin Display 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 Iljin Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iljin Display has no effect on the direction of Eagle Veterinary i.e., Eagle Veterinary and Iljin Display go up and down completely randomly.
Pair Corralation between Eagle Veterinary and Iljin Display
Assuming the 90 days trading horizon Eagle Veterinary Technology is expected to generate 0.55 times more return on investment than Iljin Display. However, Eagle Veterinary Technology is 1.83 times less risky than Iljin Display. It trades about 0.27 of its potential returns per unit of risk. Iljin Display is currently generating about 0.07 per unit of risk. If you would invest 458,634 in Eagle Veterinary Technology on October 14, 2024 and sell it today you would earn a total of 35,366 from holding Eagle Veterinary Technology or generate 7.71% 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. Iljin Display
Performance |
| Timeline |
| Eagle Veterinary Tec |
| Iljin Display |
Eagle Veterinary and Iljin Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Veterinary and Iljin Display
The main advantage of trading using opposite Eagle Veterinary and Iljin Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Veterinary position performs unexpectedly, Iljin Display 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 Iljin Display will offset losses from the drop in Iljin Display's long position.| Eagle Veterinary vs. Dongnam Chemical Co | Eagle Veterinary vs. Worldex Industry Trading | Eagle Veterinary vs. Youngbo Chemical Co | Eagle Veterinary vs. BGF Retail Co |
| Iljin Display vs. Puloon Technology | Iljin Display vs. Eagle Veterinary Technology | Iljin Display vs. Youngsin Metal Industrial | Iljin Display vs. Digital Imaging 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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