Correlation Between MEDIPOST and Shinsegae
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and Shinsegae 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 Shinsegae into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and Shinsegae, you can compare the effects of market volatilities on MEDIPOST and Shinsegae 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 Shinsegae. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and Shinsegae.
Diversification Opportunities for MEDIPOST and Shinsegae
Good diversification
The 3 months correlation between MEDIPOST and Shinsegae is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and Shinsegae in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinsegae 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 Shinsegae. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinsegae has no effect on the direction of MEDIPOST i.e., MEDIPOST and Shinsegae go up and down completely randomly.
Pair Corralation between MEDIPOST and Shinsegae
Assuming the 90 days trading horizon MEDIPOST Co is expected to generate 2.07 times more return on investment than Shinsegae. However, MEDIPOST is 2.07 times more volatile than Shinsegae. It trades about 0.01 of its potential returns per unit of risk. Shinsegae is currently generating about -0.05 per unit of risk. If you would invest 1,376,602 in MEDIPOST Co on November 2, 2024 and sell it today you would lose (215,602) from holding MEDIPOST Co or give up 15.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIPOST Co vs. Shinsegae
Performance |
| Timeline |
| MEDIPOST |
| Shinsegae |
MEDIPOST and Shinsegae Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and Shinsegae
The main advantage of trading using opposite MEDIPOST and Shinsegae positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, Shinsegae 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 will offset losses from the drop in Shinsegae's long position.| MEDIPOST vs. Heungkuk Metaltech CoLtd | MEDIPOST vs. Settlebank | MEDIPOST vs. Samsung Life Insurance | MEDIPOST vs. Dongil Metal Co |
| Shinsegae vs. Youngchang Chemical Co | Shinsegae vs. TK Chemical | Shinsegae vs. Kyung In Synthetic Corp | Shinsegae vs. Foodnamoo |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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