Correlation Between Dongbang Transport and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Dongbang Transport and MEDIPOST 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 Dongbang Transport and MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongbang Transport Logistics and MEDIPOST Co, you can compare the effects of market volatilities on Dongbang Transport and MEDIPOST 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 Dongbang Transport with a short position of MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongbang Transport and MEDIPOST.
Diversification Opportunities for Dongbang Transport and MEDIPOST
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongbang and MEDIPOST is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Dongbang Transport Logistics and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST and Dongbang Transport 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 Dongbang Transport Logistics are associated (or correlated) with MEDIPOST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIPOST has no effect on the direction of Dongbang Transport i.e., Dongbang Transport and MEDIPOST go up and down completely randomly.
Pair Corralation between Dongbang Transport and MEDIPOST
Assuming the 90 days trading horizon Dongbang Transport Logistics is expected to generate 0.33 times more return on investment than MEDIPOST. However, Dongbang Transport Logistics is 2.99 times less risky than MEDIPOST. It trades about -0.17 of its potential returns per unit of risk. MEDIPOST Co is currently generating about -0.08 per unit of risk. If you would invest 224,500 in Dongbang Transport Logistics on November 6, 2024 and sell it today you would lose (9,000) from holding Dongbang Transport Logistics or give up 4.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongbang Transport Logistics vs. MEDIPOST Co
Performance |
| Timeline |
| Dongbang Transport |
| MEDIPOST |
Dongbang Transport and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongbang Transport and MEDIPOST
The main advantage of trading using opposite Dongbang Transport and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongbang Transport position performs unexpectedly, MEDIPOST 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 MEDIPOST will offset losses from the drop in MEDIPOST's long position.| Dongbang Transport vs. LG Display Co | Dongbang Transport vs. Dongwoo Farm To | Dongbang Transport vs. Seoam Machinery Industry | Dongbang Transport vs. Hanshin Construction Co |
| MEDIPOST vs. Daishin Information Communications | MEDIPOST vs. Ssangyong Information Communication | MEDIPOST vs. Echomarketing CoLtd | MEDIPOST vs. Kisan Telecom 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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