Correlation Between MEDIANA CoLtd and BGF Retail
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd and BGF Retail 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 BGF Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and BGF Retail Co, you can compare the effects of market volatilities on MEDIANA CoLtd and BGF Retail 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 BGF Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and BGF Retail.
Diversification Opportunities for MEDIANA CoLtd and BGF Retail
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MEDIANA and BGF is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and BGF Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Retail 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 BGF Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Retail has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and BGF Retail go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and BGF Retail
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to under-perform the BGF Retail. In addition to that, MEDIANA CoLtd is 1.32 times more volatile than BGF Retail Co. It trades about -0.17 of its total potential returns per unit of risk. BGF Retail Co is currently generating about 0.01 per unit of volatility. If you would invest 10,360,000 in BGF Retail Co on November 4, 2024 and sell it today you would earn a total of 0.00 from holding BGF Retail Co 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. BGF Retail Co
Performance |
| Timeline |
| MEDIANA CoLtd |
| BGF Retail |
MEDIANA CoLtd and BGF Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and BGF Retail
The main advantage of trading using opposite MEDIANA CoLtd and BGF Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd position performs unexpectedly, BGF Retail 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 BGF Retail will offset losses from the drop in BGF Retail's long position.| MEDIANA CoLtd vs. Samsung Electronics Co | MEDIANA CoLtd vs. Samsung Electronics Co | MEDIANA CoLtd vs. KB Financial Group | MEDIANA CoLtd vs. Shinhan Financial Group |
| BGF Retail vs. Hyundai BNG Steel | BGF Retail vs. Samhyun Steel Co | BGF Retail vs. Cuckoo Homesys Co | BGF Retail vs. Moonbae Steel |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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