Correlation Between MEDIANA CoLtd and Genie Music
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd and Genie Music 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 Genie Music into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and Genie Music, you can compare the effects of market volatilities on MEDIANA CoLtd and Genie Music 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 Genie Music. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and Genie Music.
Diversification Opportunities for MEDIANA CoLtd and Genie Music
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MEDIANA and Genie is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and Genie Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genie Music 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 Genie Music. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genie Music has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and Genie Music go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and Genie Music
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to generate 1.62 times more return on investment than Genie Music. However, MEDIANA CoLtd is 1.62 times more volatile than Genie Music. It trades about 0.1 of its potential returns per unit of risk. Genie Music is currently generating about -0.1 per unit of risk. If you would invest 467,500 in MEDIANA CoLtd on August 31, 2024 and sell it today you would earn a total of 36,500 from holding MEDIANA CoLtd or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIANA CoLtd vs. Genie Music
Performance |
| Timeline |
| MEDIANA CoLtd |
| Genie Music |
MEDIANA CoLtd and Genie Music Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and Genie Music
The main advantage of trading using opposite MEDIANA CoLtd and Genie Music positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd position performs unexpectedly, Genie Music 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 Genie Music will offset losses from the drop in Genie Music's long position.| MEDIANA CoLtd vs. AptaBio Therapeutics | MEDIANA CoLtd vs. KT Hitel | MEDIANA CoLtd vs. SillaJen | MEDIANA CoLtd vs. Cytogen |
| Genie Music vs. AfreecaTV Co | Genie Music vs. Seegene | Genie Music vs. SS TECH | Genie Music 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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