Correlation Between Seohee Construction and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Seohee Construction 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 Seohee Construction and MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seohee Construction Co and MEDIPOST Co, you can compare the effects of market volatilities on Seohee Construction 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 Seohee Construction with a short position of MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seohee Construction and MEDIPOST.
Diversification Opportunities for Seohee Construction and MEDIPOST
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Seohee and MEDIPOST is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Seohee Construction Co and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST and Seohee Construction 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 Seohee Construction Co 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 Seohee Construction i.e., Seohee Construction and MEDIPOST go up and down completely randomly.
Pair Corralation between Seohee Construction and MEDIPOST
Assuming the 90 days trading horizon Seohee Construction Co is expected to under-perform the MEDIPOST. But the stock apears to be less risky and, when comparing its historical volatility, Seohee Construction Co is 2.96 times less risky than MEDIPOST. The stock trades about -0.02 of its potential returns per unit of risk. The MEDIPOST Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,133,000 in MEDIPOST Co on November 3, 2024 and sell it today you would lose (13,000) from holding MEDIPOST Co or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seohee Construction Co vs. MEDIPOST Co
Performance |
| Timeline |
| Seohee Construction |
| MEDIPOST |
Seohee Construction and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seohee Construction and MEDIPOST
The main advantage of trading using opposite Seohee Construction and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seohee Construction 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.| Seohee Construction vs. KCC Engineering Construction | Seohee Construction vs. Samchuly Bicycle Co | Seohee Construction vs. SFA Engineering | Seohee Construction vs. SEOHAN Const EngcoLtd |
| MEDIPOST vs. Kukdo Chemical Co | MEDIPOST vs. PI Advanced Materials | MEDIPOST vs. LS Materials | MEDIPOST vs. Tae Kyung Chemical |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |