Correlation Between Eagle Veterinary and Cosmecca Korea
Can any of the company-specific risk be diversified away by investing in both Eagle Veterinary and Cosmecca Korea 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 Cosmecca Korea 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 Cosmecca Korea Co, you can compare the effects of market volatilities on Eagle Veterinary and Cosmecca Korea 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 Cosmecca Korea. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Veterinary and Cosmecca Korea.
Diversification Opportunities for Eagle Veterinary and Cosmecca Korea
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eagle and Cosmecca is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Veterinary Technology and Cosmecca Korea Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cosmecca Korea 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 Cosmecca Korea. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cosmecca Korea has no effect on the direction of Eagle Veterinary i.e., Eagle Veterinary and Cosmecca Korea go up and down completely randomly.
Pair Corralation between Eagle Veterinary and Cosmecca Korea
Assuming the 90 days trading horizon Eagle Veterinary Technology is expected to under-perform the Cosmecca Korea. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Veterinary Technology is 1.6 times less risky than Cosmecca Korea. The stock trades about -0.01 of its potential returns per unit of risk. The Cosmecca Korea Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 919,000 in Cosmecca Korea Co on September 5, 2024 and sell it today you would earn a total of 4,491,000 from holding Cosmecca Korea Co or generate 488.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Veterinary Technology vs. Cosmecca Korea Co
Performance |
| Timeline |
| Eagle Veterinary Tec |
| Cosmecca Korea |
Eagle Veterinary and Cosmecca Korea Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Veterinary and Cosmecca Korea
The main advantage of trading using opposite Eagle Veterinary and Cosmecca Korea positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Veterinary position performs unexpectedly, Cosmecca Korea 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 Cosmecca Korea will offset losses from the drop in Cosmecca Korea's long position.| Eagle Veterinary vs. Kolon Life Science | Eagle Veterinary vs. Aminologics CoLtd | Eagle Veterinary vs. HLB Pharmaceutical Co | Eagle Veterinary vs. Withuspharmaceutical CoLtd |
| Cosmecca Korea vs. SS TECH | Cosmecca Korea vs. Intellian Technologies | Cosmecca Korea vs. Eagle Veterinary Technology | Cosmecca Korea vs. CU Tech Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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