Correlation Between Ssangyong Information and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Ssangyong Information 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 Ssangyong Information and MEDIPOST 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 MEDIPOST Co, you can compare the effects of market volatilities on Ssangyong Information 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 Ssangyong Information with a short position of MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssangyong Information and MEDIPOST.
Diversification Opportunities for Ssangyong Information and MEDIPOST
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ssangyong and MEDIPOST is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Ssangyong Information Communic and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST 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 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 Ssangyong Information i.e., Ssangyong Information and MEDIPOST go up and down completely randomly.
Pair Corralation between Ssangyong Information and MEDIPOST
Assuming the 90 days trading horizon Ssangyong Information Communication is expected to under-perform the MEDIPOST. But the stock apears to be less risky and, when comparing its historical volatility, Ssangyong Information Communication is 1.69 times less risky than MEDIPOST. The stock trades about 0.0 of its potential returns per unit of risk. The MEDIPOST Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,240,348 in MEDIPOST Co on December 4, 2024 and sell it today you would lose (367,348) from holding MEDIPOST Co or give up 29.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ssangyong Information Communic vs. MEDIPOST Co
Performance |
| Timeline |
| Ssangyong Information |
| MEDIPOST |
Ssangyong Information and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssangyong Information and MEDIPOST
The main advantage of trading using opposite Ssangyong Information and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssangyong Information 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.| Ssangyong Information vs. Keyang Electric Machinery | Ssangyong Information vs. Nam Hwa Construction | Ssangyong Information vs. Homecast CoLtd | Ssangyong Information vs. ENERGYMACHINERY KOREA CoLtd |
| MEDIPOST vs. Daechang Steel Co | MEDIPOST vs. Pureun Mutual Savings | MEDIPOST vs. Hotel Shilla Co | MEDIPOST vs. Atinum Investment 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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