Correlation Between MEDICOX and Ewon Comfortech
Can any of the company-specific risk be diversified away by investing in both MEDICOX and Ewon Comfortech 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 Ewon Comfortech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICOX Co and Ewon Comfortech Co, you can compare the effects of market volatilities on MEDICOX and Ewon Comfortech 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 Ewon Comfortech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICOX and Ewon Comfortech.
Diversification Opportunities for MEDICOX and Ewon Comfortech
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MEDICOX and Ewon is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding MEDICOX Co and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech 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 Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of MEDICOX i.e., MEDICOX and Ewon Comfortech go up and down completely randomly.
Pair Corralation between MEDICOX and Ewon Comfortech
Assuming the 90 days trading horizon MEDICOX Co is expected to generate 1.67 times more return on investment than Ewon Comfortech. However, MEDICOX is 1.67 times more volatile than Ewon Comfortech Co. It trades about 0.11 of its potential returns per unit of risk. Ewon Comfortech Co is currently generating about -0.19 per unit of risk. If you would invest 32,900 in MEDICOX Co on August 30, 2024 and sell it today you would earn a total of 2,800 from holding MEDICOX Co or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
MEDICOX Co vs. Ewon Comfortech Co
Performance |
| Timeline |
| MEDICOX |
| Ewon Comfortech |
MEDICOX and Ewon Comfortech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICOX and Ewon Comfortech
The main advantage of trading using opposite MEDICOX and Ewon Comfortech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICOX position performs unexpectedly, Ewon Comfortech 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 Ewon Comfortech will offset losses from the drop in Ewon Comfortech's long position.| MEDICOX vs. Vitzro Tech Co | MEDICOX vs. Busan Industrial Co | MEDICOX vs. Busan Ind | MEDICOX vs. Shinhan WTI Futures |
| Ewon Comfortech vs. KMH Hitech Co | Ewon Comfortech vs. GemVaxKAEL CoLtd | Ewon Comfortech vs. Busan Industrial Co | Ewon Comfortech vs. Busan Ind |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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