Correlation Between Eagle Veterinary and SAMG Entertainment
Can any of the company-specific risk be diversified away by investing in both Eagle Veterinary and SAMG Entertainment 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 SAMG Entertainment 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 SAMG Entertainment Co, you can compare the effects of market volatilities on Eagle Veterinary and SAMG Entertainment 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 SAMG Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Veterinary and SAMG Entertainment.
Diversification Opportunities for Eagle Veterinary and SAMG Entertainment
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and SAMG is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Veterinary Technology and SAMG Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMG Entertainment 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 SAMG Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMG Entertainment has no effect on the direction of Eagle Veterinary i.e., Eagle Veterinary and SAMG Entertainment go up and down completely randomly.
Pair Corralation between Eagle Veterinary and SAMG Entertainment
Assuming the 90 days trading horizon Eagle Veterinary Technology is expected to generate 0.54 times more return on investment than SAMG Entertainment. However, Eagle Veterinary Technology is 1.84 times less risky than SAMG Entertainment. It trades about 0.27 of its potential returns per unit of risk. SAMG Entertainment Co is currently generating about -0.1 per unit of risk. If you would invest 456,155 in Eagle Veterinary Technology on October 12, 2024 and sell it today you would earn a total of 34,345 from holding Eagle Veterinary Technology or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Veterinary Technology vs. SAMG Entertainment Co
Performance |
| Timeline |
| Eagle Veterinary Tec |
| SAMG Entertainment |
Eagle Veterinary and SAMG Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Veterinary and SAMG Entertainment
The main advantage of trading using opposite Eagle Veterinary and SAMG Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Veterinary position performs unexpectedly, SAMG Entertainment 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 SAMG Entertainment will offset losses from the drop in SAMG Entertainment's long position.| Eagle Veterinary vs. Sangsangin Investment Securities | Eagle Veterinary vs. WONIK Materials CoLtd | Eagle Veterinary vs. INNOX Advanced Materials | Eagle Veterinary vs. E Investment Development |
| SAMG Entertainment vs. Solution Advanced Technology | SAMG Entertainment vs. Eagle Veterinary Technology | SAMG Entertainment vs. Chorokbaem Healthcare Co | SAMG Entertainment vs. Lotte Data Communication |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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