Correlation Between InBody CoLtd and MEDIANA CoLtd
Can any of the company-specific risk be diversified away by investing in both InBody CoLtd 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 InBody CoLtd and MEDIANA CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InBody CoLtd and MEDIANA CoLtd, you can compare the effects of market volatilities on InBody CoLtd 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 InBody CoLtd with a short position of MEDIANA CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of InBody CoLtd and MEDIANA CoLtd.
Diversification Opportunities for InBody CoLtd and MEDIANA CoLtd
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between InBody and MEDIANA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding InBody CoLtd and MEDIANA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIANA CoLtd and InBody CoLtd 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 InBody CoLtd 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 InBody CoLtd i.e., InBody CoLtd and MEDIANA CoLtd go up and down completely randomly.
Pair Corralation between InBody CoLtd and MEDIANA CoLtd
Assuming the 90 days trading horizon InBody CoLtd is expected to generate 1.03 times more return on investment than MEDIANA CoLtd. However, InBody CoLtd is 1.03 times more volatile than MEDIANA CoLtd. It trades about 0.32 of its potential returns per unit of risk. MEDIANA CoLtd is currently generating about -0.02 per unit of risk. If you would invest 2,175,000 in InBody CoLtd on October 25, 2024 and sell it today you would earn a total of 270,000 from holding InBody CoLtd or generate 12.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InBody CoLtd vs. MEDIANA CoLtd
Performance |
| Timeline |
| InBody CoLtd |
| MEDIANA CoLtd |
InBody CoLtd and MEDIANA CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InBody CoLtd and MEDIANA CoLtd
The main advantage of trading using opposite InBody CoLtd and MEDIANA CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InBody CoLtd 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.| InBody CoLtd vs. Vieworks Co | InBody CoLtd vs. Genie Music | InBody CoLtd vs. Seegene | InBody CoLtd vs. Medy Tox |
| MEDIANA CoLtd vs. Medy Tox | MEDIANA CoLtd vs. InBody CoLtd | MEDIANA CoLtd vs. Soulbrain Holdings Co | MEDIANA CoLtd vs. Busan Industrial 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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