Correlation Between MEDICOX and INtRON Biotechnology
Can any of the company-specific risk be diversified away by investing in both MEDICOX and INtRON Biotechnology 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 INtRON Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICOX Co and iNtRON Biotechnology, you can compare the effects of market volatilities on MEDICOX and INtRON Biotechnology 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 INtRON Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICOX and INtRON Biotechnology.
Diversification Opportunities for MEDICOX and INtRON Biotechnology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MEDICOX and INtRON is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding MEDICOX Co and iNtRON Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iNtRON Biotechnology 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 INtRON Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iNtRON Biotechnology has no effect on the direction of MEDICOX i.e., MEDICOX and INtRON Biotechnology go up and down completely randomly.
Pair Corralation between MEDICOX and INtRON Biotechnology
Assuming the 90 days trading horizon MEDICOX Co is expected to generate 2.11 times more return on investment than INtRON Biotechnology. However, MEDICOX is 2.11 times more volatile than iNtRON Biotechnology. It trades about 0.07 of its potential returns per unit of risk. iNtRON Biotechnology is currently generating about -0.07 per unit of risk. If you would invest 33,400 in MEDICOX Co on August 29, 2024 and sell it today you would earn a total of 1,600 from holding MEDICOX Co or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDICOX Co vs. iNtRON Biotechnology
Performance |
| Timeline |
| MEDICOX |
| iNtRON Biotechnology |
MEDICOX and INtRON Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICOX and INtRON Biotechnology
The main advantage of trading using opposite MEDICOX and INtRON Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICOX position performs unexpectedly, INtRON Biotechnology 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 INtRON Biotechnology will offset losses from the drop in INtRON Biotechnology's long position.| MEDICOX vs. Vitzro Tech Co | MEDICOX vs. Busan Industrial Co | MEDICOX vs. Busan Ind | MEDICOX vs. Mirae Asset Daewoo |
| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Busan Industrial Co | INtRON Biotechnology vs. Busan Ind | INtRON Biotechnology vs. Mirae Asset Daewoo |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |