Correlation Between MEDIANA CoLtd and Jeong Moon
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd and Jeong Moon 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 Jeong Moon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and Jeong Moon Information, you can compare the effects of market volatilities on MEDIANA CoLtd and Jeong Moon 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 Jeong Moon. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and Jeong Moon.
Diversification Opportunities for MEDIANA CoLtd and Jeong Moon
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MEDIANA and Jeong is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and Jeong Moon Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeong Moon Information 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 Jeong Moon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeong Moon Information has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and Jeong Moon go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and Jeong Moon
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to under-perform the Jeong Moon. In addition to that, MEDIANA CoLtd is 1.04 times more volatile than Jeong Moon Information. It trades about -0.09 of its total potential returns per unit of risk. Jeong Moon Information is currently generating about 0.17 per unit of volatility. If you would invest 81,200 in Jeong Moon Information on November 8, 2024 and sell it today you would earn a total of 3,800 from holding Jeong Moon Information or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIANA CoLtd vs. Jeong Moon Information
Performance |
| Timeline |
| MEDIANA CoLtd |
| Jeong Moon Information |
MEDIANA CoLtd and Jeong Moon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and Jeong Moon
The main advantage of trading using opposite MEDIANA CoLtd and Jeong Moon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd position performs unexpectedly, Jeong Moon 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 Jeong Moon will offset losses from the drop in Jeong Moon's long position.| MEDIANA CoLtd vs. JC Chemical Co | MEDIANA CoLtd vs. Hansol Chemical Co | MEDIANA CoLtd vs. Seoul Electronics Telecom | MEDIANA CoLtd vs. Samsung Life Insurance |
| Jeong Moon vs. KMH Hitech Co | Jeong Moon vs. SEOWONINTECHCoLtd | Jeong Moon vs. Yura Tech Co | Jeong Moon vs. Next Entertainment World |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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