Correlation Between MEDIANA CoLtd and HANA Micron
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd and HANA Micron 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 HANA Micron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and HANA Micron, you can compare the effects of market volatilities on MEDIANA CoLtd and HANA Micron 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 HANA Micron. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and HANA Micron.
Diversification Opportunities for MEDIANA CoLtd and HANA Micron
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MEDIANA and HANA is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and HANA Micron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANA Micron 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 HANA Micron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANA Micron has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and HANA Micron go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and HANA Micron
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to generate 1.48 times more return on investment than HANA Micron. However, MEDIANA CoLtd is 1.48 times more volatile than HANA Micron. It trades about 0.25 of its potential returns per unit of risk. HANA Micron is currently generating about -0.01 per unit of risk. If you would invest 389,500 in MEDIANA CoLtd on September 14, 2024 and sell it today you would earn a total of 100,000 from holding MEDIANA CoLtd or generate 25.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIANA CoLtd vs. HANA Micron
Performance |
| Timeline |
| MEDIANA CoLtd |
| HANA Micron |
MEDIANA CoLtd and HANA Micron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and HANA Micron
The main advantage of trading using opposite MEDIANA CoLtd and HANA Micron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd position performs unexpectedly, HANA Micron 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 HANA Micron will offset losses from the drop in HANA Micron's long position.| MEDIANA CoLtd vs. Samsung Electronics Co | MEDIANA CoLtd vs. Samsung Electronics Co | MEDIANA CoLtd vs. SK Hynix | MEDIANA CoLtd vs. SK Holdings Co |
| HANA Micron vs. TJ media Co | HANA Micron vs. DB Insurance Co | HANA Micron vs. Genie Music | HANA Micron vs. Samsung Life Insurance |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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