Correlation Between MEDIANA CoLtd and DB Financial
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd and DB Financial 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 MEDIANA CoLtd and DB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and DB Financial Investment, you can compare the effects of market volatilities on MEDIANA CoLtd and DB Financial 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 MEDIANA CoLtd with a short position of DB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and DB Financial.
Diversification Opportunities for MEDIANA CoLtd and DB Financial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MEDIANA and 016610 is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and DB Financial Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Financial Investment and MEDIANA 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 MEDIANA CoLtd are associated (or correlated) with DB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Financial Investment has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and DB Financial go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and DB Financial
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to under-perform the DB Financial. In addition to that, MEDIANA CoLtd is 2.04 times more volatile than DB Financial Investment. It trades about -0.07 of its total potential returns per unit of risk. DB Financial Investment is currently generating about -0.02 per unit of volatility. If you would invest 555,000 in DB Financial Investment on November 3, 2024 and sell it today you would lose (9,000) from holding DB Financial Investment or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIANA CoLtd vs. DB Financial Investment
Performance |
| Timeline |
| MEDIANA CoLtd |
| DB Financial Investment |
MEDIANA CoLtd and DB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and DB Financial
The main advantage of trading using opposite MEDIANA CoLtd and DB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd position performs unexpectedly, DB Financial 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 DB Financial will offset losses from the drop in DB Financial's long position.| MEDIANA CoLtd vs. KPX Green Chemical | MEDIANA CoLtd vs. Tway Air Co | MEDIANA CoLtd vs. Air Busan Co | MEDIANA CoLtd vs. Kg Chemical |
| DB Financial vs. Samyang Foods Co | DB Financial vs. Alton Sports CoLtd | DB Financial vs. INSUN Environmental New | DB Financial vs. Heungkuk Metaltech CoLtd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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