Correlation Between MEDIANA CoLtd and Handok Clean
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd and Handok Clean 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 Handok Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and Handok Clean Tech, you can compare the effects of market volatilities on MEDIANA CoLtd and Handok Clean 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 Handok Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and Handok Clean.
Diversification Opportunities for MEDIANA CoLtd and Handok Clean
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between MEDIANA and Handok is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and Handok Clean Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handok Clean Tech 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 Handok Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handok Clean Tech has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and Handok Clean go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and Handok Clean
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to generate 1.56 times more return on investment than Handok Clean. However, MEDIANA CoLtd is 1.56 times more volatile than Handok Clean Tech. It trades about 0.03 of its potential returns per unit of risk. Handok Clean Tech is currently generating about 0.04 per unit of risk. If you would invest 475,500 in MEDIANA CoLtd on October 25, 2024 and sell it today you would earn a total of 8,500 from holding MEDIANA CoLtd or generate 1.79% 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. Handok Clean Tech
Performance |
| Timeline |
| MEDIANA CoLtd |
| Handok Clean Tech |
MEDIANA CoLtd and Handok Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and Handok Clean
The main advantage of trading using opposite MEDIANA CoLtd and Handok Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd position performs unexpectedly, Handok Clean 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 Handok Clean will offset losses from the drop in Handok Clean'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 |
| Handok Clean vs. Busan Industrial Co | Handok Clean vs. Busan Ind | Handok Clean vs. RPBio Inc | Handok Clean vs. Finebesteel |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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