Correlation Between Eugene Technology and Sang A
Can any of the company-specific risk be diversified away by investing in both Eugene Technology and Sang A 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 Eugene Technology and Sang A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eugene Technology CoLtd and Sang A Frontec CoLtd, you can compare the effects of market volatilities on Eugene Technology and Sang A 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 Eugene Technology with a short position of Sang A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Technology and Sang A.
Diversification Opportunities for Eugene Technology and Sang A
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eugene and Sang is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Technology CoLtd and Sang A Frontec CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sang A Frontec and Eugene Technology 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 Eugene Technology CoLtd are associated (or correlated) with Sang A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sang A Frontec has no effect on the direction of Eugene Technology i.e., Eugene Technology and Sang A go up and down completely randomly.
Pair Corralation between Eugene Technology and Sang A
Assuming the 90 days trading horizon Eugene Technology CoLtd is expected to under-perform the Sang A. In addition to that, Eugene Technology is 1.39 times more volatile than Sang A Frontec CoLtd. It trades about -0.14 of its total potential returns per unit of risk. Sang A Frontec CoLtd is currently generating about -0.03 per unit of volatility. If you would invest 1,975,000 in Sang A Frontec CoLtd on September 24, 2024 and sell it today you would lose (45,000) from holding Sang A Frontec CoLtd or give up 2.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eugene Technology CoLtd vs. Sang A Frontec CoLtd
Performance |
| Timeline |
| Eugene Technology CoLtd |
| Sang A Frontec |
Eugene Technology and Sang A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Technology and Sang A
The main advantage of trading using opposite Eugene Technology and Sang A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Technology position performs unexpectedly, Sang A 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 Sang A will offset losses from the drop in Sang A's long position.| Eugene Technology vs. FoodNamoo | Eugene Technology vs. Shinsegae Information Communication | Eugene Technology vs. Nable Communications | Eugene Technology vs. Innowireless Co |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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