Correlation Between Myoung Shin and MEDIANA CoLtd
Can any of the company-specific risk be diversified away by investing in both Myoung Shin and MEDIANA CoLtd 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 Myoung Shin and MEDIANA CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Myoung Shin Industrial and MEDIANA CoLtd, you can compare the effects of market volatilities on Myoung Shin and MEDIANA CoLtd 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 Myoung Shin with a short position of MEDIANA CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Myoung Shin and MEDIANA CoLtd.
Diversification Opportunities for Myoung Shin and MEDIANA CoLtd
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Myoung and MEDIANA is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Myoung Shin Industrial and MEDIANA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIANA CoLtd and Myoung Shin 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 Myoung Shin Industrial are associated (or correlated) with MEDIANA CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIANA CoLtd has no effect on the direction of Myoung Shin i.e., Myoung Shin and MEDIANA CoLtd go up and down completely randomly.
Pair Corralation between Myoung Shin and MEDIANA CoLtd
Assuming the 90 days trading horizon Myoung Shin Industrial is expected to under-perform the MEDIANA CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Myoung Shin Industrial is 1.2 times less risky than MEDIANA CoLtd. The stock trades about -0.01 of its potential returns per unit of risk. The MEDIANA CoLtd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 529,324 in MEDIANA CoLtd on October 17, 2024 and sell it today you would lose (40,824) from holding MEDIANA CoLtd or give up 7.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Myoung Shin Industrial vs. MEDIANA CoLtd
Performance |
| Timeline |
| Myoung Shin Industrial |
| MEDIANA CoLtd |
Myoung Shin and MEDIANA CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Myoung Shin and MEDIANA CoLtd
The main advantage of trading using opposite Myoung Shin and MEDIANA CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Myoung Shin position performs unexpectedly, MEDIANA CoLtd 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 MEDIANA CoLtd will offset losses from the drop in MEDIANA CoLtd's long position.| Myoung Shin vs. Dongil Metal Co | Myoung Shin vs. Kbi Metal Co | Myoung Shin vs. Eagle Veterinary Technology | Myoung Shin vs. Dongil Technology |
| MEDIANA CoLtd vs. Myoung Shin Industrial | MEDIANA CoLtd vs. Eagon Industrial Co | MEDIANA CoLtd vs. Jeong Moon Information | MEDIANA CoLtd vs. Dongil Metal 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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