Correlation Between Korea Computer and MediaZen
Can any of the company-specific risk be diversified away by investing in both Korea Computer and MediaZen 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 Korea Computer and MediaZen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Computer and MediaZen, you can compare the effects of market volatilities on Korea Computer and MediaZen 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 Korea Computer with a short position of MediaZen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Computer and MediaZen.
Diversification Opportunities for Korea Computer and MediaZen
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Korea and MediaZen is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Korea Computer and MediaZen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaZen and Korea Computer 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 Korea Computer are associated (or correlated) with MediaZen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaZen has no effect on the direction of Korea Computer i.e., Korea Computer and MediaZen go up and down completely randomly.
Pair Corralation between Korea Computer and MediaZen
If you would invest 502,000 in Korea Computer on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Korea Computer 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 |
Korea Computer vs. MediaZen
Performance |
| Timeline |
| Korea Computer |
| MediaZen |
Korea Computer and MediaZen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Computer and MediaZen
The main advantage of trading using opposite Korea Computer and MediaZen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Computer position performs unexpectedly, MediaZen 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 MediaZen will offset losses from the drop in MediaZen's long position.| Korea Computer vs. Daou Data Corp | Korea Computer vs. Busan Industrial Co | Korea Computer vs. Busan Ind | Korea Computer vs. Shinhan WTI Futures |
| MediaZen vs. Samsung Electronics Co | MediaZen vs. Samsung Electronics Co | MediaZen vs. LG Energy Solution | MediaZen 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |