Correlation Between Hyundai Green and Eagle Veterinary
Can any of the company-specific risk be diversified away by investing in both Hyundai Green 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 Hyundai Green and Eagle Veterinary into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyundai Green Food and Eagle Veterinary Technology, you can compare the effects of market volatilities on Hyundai Green 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 Hyundai Green with a short position of Eagle Veterinary. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyundai Green and Eagle Veterinary.
Diversification Opportunities for Hyundai Green and Eagle Veterinary
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyundai and Eagle is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Hyundai Green Food 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 Hyundai Green 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 Hyundai Green Food 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 Hyundai Green i.e., Hyundai Green and Eagle Veterinary go up and down completely randomly.
Pair Corralation between Hyundai Green and Eagle Veterinary
Assuming the 90 days trading horizon Hyundai Green Food is expected to generate 0.82 times more return on investment than Eagle Veterinary. However, Hyundai Green Food is 1.21 times less risky than Eagle Veterinary. It trades about 0.48 of its potential returns per unit of risk. Eagle Veterinary Technology is currently generating about 0.01 per unit of risk. If you would invest 1,298,000 in Hyundai Green Food on September 20, 2024 and sell it today you would earn a total of 291,000 from holding Hyundai Green Food or generate 22.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hyundai Green Food vs. Eagle Veterinary Technology
Performance |
| Timeline |
| Hyundai Green Food |
| Eagle Veterinary Tec |
Hyundai Green and Eagle Veterinary Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyundai Green and Eagle Veterinary
The main advantage of trading using opposite Hyundai Green and Eagle Veterinary positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyundai Green 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.| Hyundai Green vs. Samsung Electronics Co | Hyundai Green vs. Samsung Electronics Co | Hyundai Green vs. LG Energy Solution | Hyundai Green vs. SK Hynix |
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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 Stocks Directory module to find actively traded stocks across global markets.
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