Correlation Between Eagle Veterinary and Amogreentech
Can any of the company-specific risk be diversified away by investing in both Eagle Veterinary and Amogreentech 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 Amogreentech 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 Amogreentech Co, you can compare the effects of market volatilities on Eagle Veterinary and Amogreentech 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 Amogreentech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Veterinary and Amogreentech.
Diversification Opportunities for Eagle Veterinary and Amogreentech
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eagle and Amogreentech is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Veterinary Technology and Amogreentech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech 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 Amogreentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech has no effect on the direction of Eagle Veterinary i.e., Eagle Veterinary and Amogreentech go up and down completely randomly.
Pair Corralation between Eagle Veterinary and Amogreentech
Assuming the 90 days trading horizon Eagle Veterinary Technology is expected to generate 0.61 times more return on investment than Amogreentech. However, Eagle Veterinary Technology is 1.64 times less risky than Amogreentech. It trades about -0.03 of its potential returns per unit of risk. Amogreentech Co is currently generating about -0.09 per unit of risk. If you would invest 552,000 in Eagle Veterinary Technology on August 25, 2024 and sell it today you would lose (73,500) from holding Eagle Veterinary Technology or give up 13.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Veterinary Technology vs. Amogreentech Co
Performance |
| Timeline |
| Eagle Veterinary Tec |
| Amogreentech |
Eagle Veterinary and Amogreentech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Veterinary and Amogreentech
The main advantage of trading using opposite Eagle Veterinary and Amogreentech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Veterinary position performs unexpectedly, Amogreentech 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 Amogreentech will offset losses from the drop in Amogreentech's long position.| Eagle Veterinary vs. Kolon Life Science | Eagle Veterinary vs. Aminologics CoLtd | Eagle Veterinary vs. Daihan Pharmaceutical CoLtd | Eagle Veterinary vs. Withuspharmaceutical CoLtd |
| Amogreentech vs. Seoul Semiconductor Co | Amogreentech vs. PJ Metal Co | Amogreentech vs. Daedong Metals Co | Amogreentech vs. Samsung Publishing 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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