Correlation Between Ssangyong Information and MEDIANA CoLtd
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information 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 Ssangyong Information and MEDIANA CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssangyong Information Communication and MEDIANA CoLtd, you can compare the effects of market volatilities on Ssangyong Information 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 Ssangyong Information with a short position of MEDIANA CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and MEDIANA CoLtd.
Diversification Opportunities for Ssangyong Information and MEDIANA CoLtd
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ssangyong and MEDIANA is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and MEDIANA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIANA CoLtd and Ssangyong Information 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 Ssangyong Information Communication 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 Ssangyong Information i.e., Ssangyong Information and MEDIANA CoLtd go up and down completely randomly.
Pair Corralation between Ssangyong Information and MEDIANA CoLtd
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the MEDIANA CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 1.84 times less risky than MEDIANA CoLtd. The stock trades about -0.03 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 522,638 in MEDIANA CoLtd on August 30, 2024 and sell it today you would lose (32,638) from holding MEDIANA CoLtd or give up 6.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssangyong Information Communic vs. MEDIANA CoLtd
Performance |
| Timeline |
| Ssangyong Information |
| MEDIANA CoLtd |
Ssangyong Information and MEDIANA CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and MEDIANA CoLtd
The main advantage of trading using opposite Ssangyong Information and MEDIANA CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information 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.| Ssangyong Information vs. Cafe24 Corp | Ssangyong Information vs. Korea Computer Systems | Ssangyong Information vs. Daishin Information Communications | Ssangyong Information vs. SSR Inc |
| MEDIANA CoLtd vs. Samsung Electronics Co | MEDIANA CoLtd vs. Samsung Electronics Co | MEDIANA CoLtd vs. LG Energy Solution | MEDIANA CoLtd vs. SK Hynix |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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