Correlation Between MEDIANA CoLtd and Taegu Broadcasting
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd and Taegu Broadcasting 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 Taegu Broadcasting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and Taegu Broadcasting, you can compare the effects of market volatilities on MEDIANA CoLtd and Taegu Broadcasting 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 Taegu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and Taegu Broadcasting.
Diversification Opportunities for MEDIANA CoLtd and Taegu Broadcasting
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MEDIANA and Taegu is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and Taegu Broadcasting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taegu Broadcasting 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 Taegu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taegu Broadcasting has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and Taegu Broadcasting go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and Taegu Broadcasting
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to generate 3.02 times more return on investment than Taegu Broadcasting. However, MEDIANA CoLtd is 3.02 times more volatile than Taegu Broadcasting. It trades about 0.12 of its potential returns per unit of risk. Taegu Broadcasting is currently generating about -0.16 per unit of risk. If you would invest 465,500 in MEDIANA CoLtd on September 1, 2024 and sell it today you would earn a total of 45,500 from holding MEDIANA CoLtd or generate 9.77% 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. Taegu Broadcasting
Performance |
| Timeline |
| MEDIANA CoLtd |
| Taegu Broadcasting |
MEDIANA CoLtd and Taegu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and Taegu Broadcasting
The main advantage of trading using opposite MEDIANA CoLtd and Taegu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd position performs unexpectedly, Taegu Broadcasting 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 Taegu Broadcasting will offset losses from the drop in Taegu Broadcasting's long position.| MEDIANA CoLtd vs. Daesung Hi Tech Co | MEDIANA CoLtd vs. Korea Computer | MEDIANA CoLtd vs. Nable Communications | MEDIANA CoLtd vs. Husteel |
| Taegu Broadcasting vs. FNC Entertainment Co | Taegu Broadcasting vs. Coloray International Investment | Taegu Broadcasting vs. Lindeman Asia Investment | Taegu Broadcasting 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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