Correlation Between MEDICOX and Shinsegae Food
Can any of the company-specific risk be diversified away by investing in both MEDICOX and Shinsegae Food 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 MEDICOX and Shinsegae Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICOX Co and Shinsegae Food, you can compare the effects of market volatilities on MEDICOX and Shinsegae Food 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 MEDICOX with a short position of Shinsegae Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICOX and Shinsegae Food.
Diversification Opportunities for MEDICOX and Shinsegae Food
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MEDICOX and Shinsegae is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding MEDICOX Co and Shinsegae Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae Food and MEDICOX 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 MEDICOX Co are associated (or correlated) with Shinsegae Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae Food has no effect on the direction of MEDICOX i.e., MEDICOX and Shinsegae Food go up and down completely randomly.
Pair Corralation between MEDICOX and Shinsegae Food
Assuming the 90 days trading horizon MEDICOX Co is expected to generate 7.4 times more return on investment than Shinsegae Food. However, MEDICOX is 7.4 times more volatile than Shinsegae Food. It trades about 0.03 of its potential returns per unit of risk. Shinsegae Food is currently generating about 0.01 per unit of risk. If you would invest 28,500 in MEDICOX Co on November 27, 2024 and sell it today you would lose (500.00) from holding MEDICOX Co or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDICOX Co vs. Shinsegae Food
Performance |
| Timeline |
| MEDICOX |
| Shinsegae Food |
MEDICOX and Shinsegae Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICOX and Shinsegae Food
The main advantage of trading using opposite MEDICOX and Shinsegae Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICOX position performs unexpectedly, Shinsegae Food 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 Shinsegae Food will offset losses from the drop in Shinsegae Food's long position.| MEDICOX vs. Sung Bo Chemicals | MEDICOX vs. Foodnamoo | MEDICOX vs. SK Chemicals Co | MEDICOX vs. TK Chemical |
| Shinsegae Food vs. Chorokbaem Healthcare Co | Shinsegae Food vs. Infinitt Healthcare Co | Shinsegae Food vs. Pureun Mutual Savings | Shinsegae Food vs. INFINITT Healthcare Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |