Correlation Between Pureun Mutual and MEDICOX
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual 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 Pureun Mutual and MEDICOX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pureun Mutual Savings and MEDICOX Co, you can compare the effects of market volatilities on Pureun Mutual 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 Pureun Mutual with a short position of MEDICOX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and MEDICOX.
Diversification Opportunities for Pureun Mutual and MEDICOX
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pureun and MEDICOX is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and MEDICOX Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICOX and Pureun Mutual 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 Pureun Mutual Savings 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 Pureun Mutual i.e., Pureun Mutual and MEDICOX go up and down completely randomly.
Pair Corralation between Pureun Mutual and MEDICOX
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to generate 0.53 times more return on investment than MEDICOX. However, Pureun Mutual Savings is 1.9 times less risky than MEDICOX. It trades about 0.02 of its potential returns per unit of risk. MEDICOX Co is currently generating about -0.06 per unit of risk. If you would invest 851,283 in Pureun Mutual Savings on September 14, 2024 and sell it today you would earn a total of 10,717 from holding Pureun Mutual Savings or generate 1.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. MEDICOX Co
Performance |
| Timeline |
| Pureun Mutual Savings |
| MEDICOX |
Pureun Mutual and MEDICOX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and MEDICOX
The main advantage of trading using opposite Pureun Mutual and MEDICOX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual 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.| Pureun Mutual vs. KB Financial Group | Pureun Mutual vs. Shinhan Financial Group | Pureun Mutual vs. Hana Financial | Pureun Mutual 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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