Correlation Between MEDIANA CoLtd and SAMG Entertainment
Can any of the company-specific risk be diversified away by investing in both MEDIANA CoLtd and SAMG Entertainment 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 SAMG Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIANA CoLtd and SAMG Entertainment Co, you can compare the effects of market volatilities on MEDIANA CoLtd and SAMG Entertainment 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 SAMG Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIANA CoLtd and SAMG Entertainment.
Diversification Opportunities for MEDIANA CoLtd and SAMG Entertainment
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MEDIANA and SAMG is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding MEDIANA CoLtd and SAMG Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAMG Entertainment 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 SAMG Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAMG Entertainment has no effect on the direction of MEDIANA CoLtd i.e., MEDIANA CoLtd and SAMG Entertainment go up and down completely randomly.
Pair Corralation between MEDIANA CoLtd and SAMG Entertainment
Assuming the 90 days trading horizon MEDIANA CoLtd is expected to generate 0.83 times more return on investment than SAMG Entertainment. However, MEDIANA CoLtd is 1.21 times less risky than SAMG Entertainment. It trades about 0.01 of its potential returns per unit of risk. SAMG Entertainment Co is currently generating about -0.04 per unit of risk. If you would invest 519,393 in MEDIANA CoLtd on October 23, 2024 and sell it today you would lose (24,393) from holding MEDIANA CoLtd or give up 4.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIANA CoLtd vs. SAMG Entertainment Co
Performance |
| Timeline |
| MEDIANA CoLtd |
| SAMG Entertainment |
MEDIANA CoLtd and SAMG Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIANA CoLtd and SAMG Entertainment
The main advantage of trading using opposite MEDIANA CoLtd and SAMG Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIANA CoLtd position performs unexpectedly, SAMG Entertainment 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 SAMG Entertainment will offset losses from the drop in SAMG Entertainment's long position.| MEDIANA CoLtd vs. Ssangyong Information Communication | MEDIANA CoLtd vs. Lotte Non Life Insurance | MEDIANA CoLtd vs. Dgb Financial | MEDIANA CoLtd vs. InfoBank |
| SAMG Entertainment vs. Samsung Electronics Co | SAMG Entertainment vs. Samsung Electronics Co | SAMG Entertainment vs. LG Energy Solution | SAMG Entertainment vs. SK Hynix |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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