Correlation Between Sang A and Eagle Veterinary
Can any of the company-specific risk be diversified away by investing in both Sang A and Eagle Veterinary 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 Sang A and Eagle Veterinary into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sang A Frontec CoLtd and Eagle Veterinary Technology, you can compare the effects of market volatilities on Sang A and Eagle Veterinary 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 Sang A with a short position of Eagle Veterinary. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sang A and Eagle Veterinary.
Diversification Opportunities for Sang A and Eagle Veterinary
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sang and Eagle is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sang A Frontec CoLtd and Eagle Veterinary Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Veterinary Tec and Sang A 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 Sang A Frontec CoLtd are associated (or correlated) with Eagle Veterinary. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Veterinary Tec has no effect on the direction of Sang A i.e., Sang A and Eagle Veterinary go up and down completely randomly.
Pair Corralation between Sang A and Eagle Veterinary
Assuming the 90 days trading horizon Sang A Frontec CoLtd is expected to under-perform the Eagle Veterinary. In addition to that, Sang A is 1.4 times more volatile than Eagle Veterinary Technology. It trades about -0.08 of its total potential returns per unit of risk. Eagle Veterinary Technology is currently generating about -0.04 per unit of volatility. If you would invest 540,000 in Eagle Veterinary Technology on September 27, 2024 and sell it today you would lose (60,000) from holding Eagle Veterinary Technology or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sang A Frontec CoLtd vs. Eagle Veterinary Technology
Performance |
| Timeline |
| Sang A Frontec |
| Eagle Veterinary Tec |
Sang A and Eagle Veterinary Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sang A and Eagle Veterinary
The main advantage of trading using opposite Sang A and Eagle Veterinary positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sang A position performs unexpectedly, Eagle Veterinary 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 Eagle Veterinary will offset losses from the drop in Eagle Veterinary's long position.| Sang A vs. Eagle Veterinary Technology | Sang A vs. Cots Technology Co | Sang A vs. Jin Air Co | Sang A vs. Hanjin Transportation Co |
| Eagle Veterinary vs. Kolon Life Science | Eagle Veterinary vs. JETEMA Co | Eagle Veterinary vs. Aminologics CoLtd | Eagle Veterinary vs. HLB Pharmaceutical 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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