Correlation Between Sangsangin Investment and MEDICOX
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and MEDICOX 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 Sangsangin Investment and MEDICOX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and MEDICOX Co, you can compare the effects of market volatilities on Sangsangin Investment and MEDICOX 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 Sangsangin Investment with a short position of MEDICOX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and MEDICOX.
Diversification Opportunities for Sangsangin Investment and MEDICOX
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sangsangin and MEDICOX is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and MEDICOX Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICOX and Sangsangin Investment 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 Sangsangin Investment Securities are associated (or correlated) with MEDICOX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICOX has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and MEDICOX go up and down completely randomly.
Pair Corralation between Sangsangin Investment and MEDICOX
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to generate 0.25 times more return on investment than MEDICOX. However, Sangsangin Investment Securities is 4.02 times less risky than MEDICOX. It trades about -0.18 of its potential returns per unit of risk. MEDICOX Co is currently generating about -0.06 per unit of risk. If you would invest 79,900 in Sangsangin Investment Securities on September 14, 2024 and sell it today you would lose (37,800) from holding Sangsangin Investment Securities or give up 47.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. MEDICOX Co
Performance |
| Timeline |
| Sangsangin Investment |
| MEDICOX |
Sangsangin Investment and MEDICOX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and MEDICOX
The main advantage of trading using opposite Sangsangin Investment and MEDICOX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, MEDICOX 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 MEDICOX will offset losses from the drop in MEDICOX's long position.| Sangsangin Investment vs. KB Financial Group | Sangsangin Investment vs. Shinhan Financial Group | Sangsangin Investment vs. Hana Financial | Sangsangin Investment vs. Woori Financial Group |
| MEDICOX vs. HyVision System | MEDICOX vs. Daebo Magnetic CoLtd | MEDICOX vs. Vitzro Tech Co | MEDICOX vs. Solution Advanced Technology |
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.
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