Correlation Between MEDIANA CoLtd and Dongil Metal
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd and Dongil Metal 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 Dongil Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and Dongil Metal Co, you can compare the effects of market volatilities on MEDIANA CoLtd and Dongil Metal 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 Dongil Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and Dongil Metal.
Diversification Opportunities for MEDIANA CoLtd and Dongil Metal
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between MEDIANA and Dongil is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and Dongil Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongil Metal 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 Dongil Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongil Metal has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and Dongil Metal go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and Dongil Metal
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to under-perform the Dongil Metal. In addition to that, MEDIANA CoLtd is 2.18 times more volatile than Dongil Metal Co. It trades about -0.04 of its total potential returns per unit of risk. Dongil Metal Co is currently generating about 0.04 per unit of volatility. If you would invest 858,969 in Dongil Metal Co on October 26, 2024 and sell it today you would earn a total of 44,031 from holding Dongil Metal Co or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIANA CoLtd vs. Dongil Metal Co
Performance |
| Timeline |
| MEDIANA CoLtd |
| Dongil Metal |
MEDIANA CoLtd and Dongil Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and Dongil Metal
The main advantage of trading using opposite MEDIANA CoLtd and Dongil Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd position performs unexpectedly, Dongil Metal 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 Dongil Metal will offset losses from the drop in Dongil Metal's long position.| MEDIANA CoLtd vs. Medy Tox | MEDIANA CoLtd vs. InBody CoLtd | MEDIANA CoLtd vs. Soulbrain Holdings Co | MEDIANA CoLtd vs. Busan Industrial Co |
| Dongil Metal vs. MEDIANA CoLtd | Dongil Metal vs. A Tech Solution Co | Dongil Metal vs. SAMG Entertainment Co | Dongil Metal vs. MediaZen |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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