Correlation Between Koh Young and Eagle Veterinary
Can any of the company-specific risk be diversified away by investing in both Koh Young 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 Koh Young and Eagle Veterinary into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koh Young Technology and Eagle Veterinary Technology, you can compare the effects of market volatilities on Koh Young 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 Koh Young with a short position of Eagle Veterinary. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koh Young and Eagle Veterinary.
Diversification Opportunities for Koh Young and Eagle Veterinary
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Koh and Eagle is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Koh Young Technology 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 Koh Young 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 Koh Young Technology 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 Koh Young i.e., Koh Young and Eagle Veterinary go up and down completely randomly.
Pair Corralation between Koh Young and Eagle Veterinary
Assuming the 90 days trading horizon Koh Young Technology is expected to under-perform the Eagle Veterinary. In addition to that, Koh Young is 3.89 times more volatile than Eagle Veterinary Technology. It trades about -0.06 of its total potential returns per unit of risk. Eagle Veterinary Technology is currently generating about -0.22 per unit of volatility. If you would invest 460,500 in Eagle Veterinary Technology on December 8, 2024 and sell it today you would lose (22,500) from holding Eagle Veterinary Technology or give up 4.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koh Young Technology vs. Eagle Veterinary Technology
Performance |
| Timeline |
| Koh Young Technology |
| Eagle Veterinary Tec |
Koh Young and Eagle Veterinary Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koh Young and Eagle Veterinary
The main advantage of trading using opposite Koh Young and Eagle Veterinary positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koh Young 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.The idea behind Koh Young Technology and Eagle Veterinary Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Eagle Veterinary vs. Sangsin Energy Display | Eagle Veterinary vs. PLAYWITH | Eagle Veterinary vs. SK Telecom Co | Eagle Veterinary vs. PlayD 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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