Correlation Between Eagle Veterinary and Koh Young
Can any of the company-specific risk be diversified away by investing in both Eagle Veterinary and Koh Young 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 Koh Young 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 Koh Young Technology, you can compare the effects of market volatilities on Eagle Veterinary and Koh Young 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 Koh Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Veterinary and Koh Young.
Diversification Opportunities for Eagle Veterinary and Koh Young
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eagle and Koh is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Veterinary Technology and Koh Young Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koh Young Technology 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 Koh Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koh Young Technology has no effect on the direction of Eagle Veterinary i.e., Eagle Veterinary and Koh Young go up and down completely randomly.
Pair Corralation between Eagle Veterinary and Koh Young
Assuming the 90 days trading horizon Eagle Veterinary is expected to generate 3.56 times less return on investment than Koh Young. In addition to that, Eagle Veterinary is 1.02 times more volatile than Koh Young Technology. It trades about 0.01 of its total potential returns per unit of risk. Koh Young Technology is currently generating about 0.03 per unit of volatility. If you would invest 849,000 in Koh Young Technology on September 20, 2024 and sell it today you would earn a total of 8,000 from holding Koh Young Technology or generate 0.94% 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. Koh Young Technology
Performance |
| Timeline |
| Eagle Veterinary Tec |
| Koh Young Technology |
Eagle Veterinary and Koh Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Veterinary and Koh Young
The main advantage of trading using opposite Eagle Veterinary and Koh Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Veterinary position performs unexpectedly, Koh Young 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 Koh Young will offset losses from the drop in Koh Young's long position.| Eagle Veterinary vs. Hyundai Green Food | Eagle Veterinary vs. Samlip General Foods | Eagle Veterinary vs. Shinhan Financial Group | Eagle Veterinary vs. Pureun Mutual Savings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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