Correlation Between Eagle Veterinary and Ilji Technology
Can any of the company-specific risk be diversified away by investing in both Eagle Veterinary and Ilji Technology 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 Veterinary and Ilji Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Veterinary Technology and Ilji Technology Co, you can compare the effects of market volatilities on Eagle Veterinary and Ilji Technology 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 Veterinary with a short position of Ilji Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Veterinary and Ilji Technology.
Diversification Opportunities for Eagle Veterinary and Ilji Technology
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eagle and Ilji is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Veterinary Technology and Ilji Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ilji Technology and Eagle Veterinary 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 Veterinary Technology are associated (or correlated) with Ilji Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ilji Technology has no effect on the direction of Eagle Veterinary i.e., Eagle Veterinary and Ilji Technology go up and down completely randomly.
Pair Corralation between Eagle Veterinary and Ilji Technology
Assuming the 90 days trading horizon Eagle Veterinary Technology is expected to under-perform the Ilji Technology. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Veterinary Technology is 1.18 times less risky than Ilji Technology. The stock trades about -0.04 of its potential returns per unit of risk. The Ilji Technology Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 370,018 in Ilji Technology Co on December 1, 2024 and sell it today you would earn a total of 53,982 from holding Ilji Technology Co or generate 14.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Eagle Veterinary Technology vs. Ilji Technology Co
Performance |
Timeline |
Eagle Veterinary Tec |
Ilji Technology |
Eagle Veterinary and Ilji Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Veterinary and Ilji Technology
The main advantage of trading using opposite Eagle Veterinary and Ilji Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Veterinary position performs unexpectedly, Ilji Technology 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 Ilji Technology will offset losses from the drop in Ilji Technology's long position.Eagle Veterinary vs. Hankook Furniture Co | Eagle Veterinary vs. Seoul Food Industrial | Eagle Veterinary vs. Air Busan Co | Eagle Veterinary vs. Korea Air Svc |
Ilji Technology vs. Korean Air Lines | Ilji Technology vs. Digital Multimedia Technology | Ilji Technology vs. JYP Entertainment Corp | Ilji Technology vs. T3 Entertainment 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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