Correlation Between Eagle Cold and Cowealth Medical
Can any of the company-specific risk be diversified away by investing in both Eagle Cold and Cowealth Medical 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 Eagle Cold and Cowealth Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Cold Storage and Cowealth Medical Holding, you can compare the effects of market volatilities on Eagle Cold and Cowealth Medical 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 Eagle Cold with a short position of Cowealth Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Cold and Cowealth Medical.
Diversification Opportunities for Eagle Cold and Cowealth Medical
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagle and Cowealth is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Cold Storage and Cowealth Medical Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowealth Medical Holding and Eagle Cold 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 Eagle Cold Storage are associated (or correlated) with Cowealth Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowealth Medical Holding has no effect on the direction of Eagle Cold i.e., Eagle Cold and Cowealth Medical go up and down completely randomly.
Pair Corralation between Eagle Cold and Cowealth Medical
Assuming the 90 days trading horizon Eagle Cold Storage is expected to generate 1.15 times more return on investment than Cowealth Medical. However, Eagle Cold is 1.15 times more volatile than Cowealth Medical Holding. It trades about 0.02 of its potential returns per unit of risk. Cowealth Medical Holding is currently generating about -0.2 per unit of risk. If you would invest 3,130 in Eagle Cold Storage on October 26, 2024 and sell it today you would earn a total of 30.00 from holding Eagle Cold Storage or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Cold Storage vs. Cowealth Medical Holding
Performance |
| Timeline |
| Eagle Cold Storage |
| Cowealth Medical Holding |
Eagle Cold and Cowealth Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Cold and Cowealth Medical
The main advantage of trading using opposite Eagle Cold and Cowealth Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Cold position performs unexpectedly, Cowealth Medical 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 Cowealth Medical will offset losses from the drop in Cowealth Medical's long position.| Eagle Cold vs. First Insurance Co | Eagle Cold vs. Shin Kong Financial | Eagle Cold vs. Thye Ming Industrial | Eagle Cold vs. China Times Publishing |
| Cowealth Medical vs. Prime Oil Chemical | Cowealth Medical vs. Shiny Chemical Industrial | Cowealth Medical vs. AVer Information | Cowealth Medical vs. Eagle Cold Storage |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |