Correlation Between Dongwoon Anatech and Eagon Industrial
Can any of the company-specific risk be diversified away by investing in both Dongwoon Anatech and Eagon Industrial 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 Dongwoon Anatech and Eagon Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongwoon Anatech Co and Eagon Industrial Co, you can compare the effects of market volatilities on Dongwoon Anatech and Eagon Industrial 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 Dongwoon Anatech with a short position of Eagon Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongwoon Anatech and Eagon Industrial.
Diversification Opportunities for Dongwoon Anatech and Eagon Industrial
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dongwoon and Eagon is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Dongwoon Anatech Co and Eagon Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagon Industrial and Dongwoon Anatech 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 Dongwoon Anatech Co are associated (or correlated) with Eagon Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagon Industrial has no effect on the direction of Dongwoon Anatech i.e., Dongwoon Anatech and Eagon Industrial go up and down completely randomly.
Pair Corralation between Dongwoon Anatech and Eagon Industrial
Assuming the 90 days trading horizon Dongwoon Anatech is expected to generate 8.31 times less return on investment than Eagon Industrial. But when comparing it to its historical volatility, Dongwoon Anatech Co is 2.77 times less risky than Eagon Industrial. It trades about 0.02 of its potential returns per unit of risk. Eagon Industrial Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 525,000 in Eagon Industrial Co on November 7, 2024 and sell it today you would earn a total of 19,000 from holding Eagon Industrial Co or generate 3.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.47% |
| Values | Daily Returns |
Dongwoon Anatech Co vs. Eagon Industrial Co
Performance |
| Timeline |
| Dongwoon Anatech |
| Eagon Industrial |
Dongwoon Anatech and Eagon Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongwoon Anatech and Eagon Industrial
The main advantage of trading using opposite Dongwoon Anatech and Eagon Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongwoon Anatech position performs unexpectedly, Eagon Industrial 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 Eagon Industrial will offset losses from the drop in Eagon Industrial's long position.| Dongwoon Anatech vs. SK Hynix | Dongwoon Anatech vs. LX Semicon Co | Dongwoon Anatech vs. Tokai Carbon Korea | Dongwoon Anatech vs. People Technology |
| Eagon Industrial vs. AptaBio Therapeutics | Eagon Industrial vs. Daewoo SBI SPAC | Eagon Industrial vs. Dream Security co | Eagon Industrial vs. Microfriend |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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