Correlation Between MEDIPOST and Yuhan
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and Yuhan 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 MEDIPOST and Yuhan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and Yuhan, you can compare the effects of market volatilities on MEDIPOST and Yuhan 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 MEDIPOST with a short position of Yuhan. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and Yuhan.
Diversification Opportunities for MEDIPOST and Yuhan
Very good diversification
The 3 months correlation between MEDIPOST and Yuhan is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and Yuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuhan and MEDIPOST 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 MEDIPOST Co are associated (or correlated) with Yuhan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuhan has no effect on the direction of MEDIPOST i.e., MEDIPOST and Yuhan go up and down completely randomly.
Pair Corralation between MEDIPOST and Yuhan
Assuming the 90 days trading horizon MEDIPOST is expected to generate 8.61 times less return on investment than Yuhan. In addition to that, MEDIPOST is 1.19 times more volatile than Yuhan. It trades about 0.01 of its total potential returns per unit of risk. Yuhan is currently generating about 0.08 per unit of volatility. If you would invest 4,980,952 in Yuhan on November 2, 2024 and sell it today you would earn a total of 8,009,048 from holding Yuhan or generate 160.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIPOST Co vs. Yuhan
Performance |
| Timeline |
| MEDIPOST |
| Yuhan |
MEDIPOST and Yuhan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and Yuhan
The main advantage of trading using opposite MEDIPOST and Yuhan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, Yuhan 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 Yuhan will offset losses from the drop in Yuhan's long position.| MEDIPOST vs. Heungkuk Metaltech CoLtd | MEDIPOST vs. Settlebank | MEDIPOST vs. Samsung Life Insurance | MEDIPOST vs. Dongil Metal Co |
| Yuhan vs. Dongil Metal Co | Yuhan vs. Heungkuk Metaltech CoLtd | Yuhan vs. Daishin Information Communications | Yuhan vs. SK Chemicals 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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