Correlation Between MEDIANA CoLtd and WooriNet
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd and WooriNet 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 WooriNet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and WooriNet, you can compare the effects of market volatilities on MEDIANA CoLtd and WooriNet 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 WooriNet. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and WooriNet.
Diversification Opportunities for MEDIANA CoLtd and WooriNet
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between MEDIANA and WooriNet is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and WooriNet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WooriNet 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 WooriNet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WooriNet has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and WooriNet go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and WooriNet
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to under-perform the WooriNet. But the stock apears to be less risky and, when comparing its historical volatility, MEDIANA CoLtd is 3.01 times less risky than WooriNet. The stock trades about -0.03 of its potential returns per unit of risk. The WooriNet is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 725,000 in WooriNet on October 24, 2024 and sell it today you would earn a total of 0.00 from holding WooriNet or generate 0.0% 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. WooriNet
Performance |
| Timeline |
| MEDIANA CoLtd |
| WooriNet |
MEDIANA CoLtd and WooriNet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and WooriNet
The main advantage of trading using opposite MEDIANA CoLtd and WooriNet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd position performs unexpectedly, WooriNet 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 WooriNet will offset losses from the drop in WooriNet's long position.| MEDIANA CoLtd vs. Lotte Data Communication | MEDIANA CoLtd vs. Hankuk Steel Wire | MEDIANA CoLtd vs. Dong A Steel Technology | MEDIANA CoLtd vs. Korea Information Communications |
| WooriNet vs. MEDIANA CoLtd | WooriNet vs. Daejung Chemicals Metals | WooriNet vs. Daiyang Metal Co | WooriNet vs. Cube Entertainment |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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