Correlation Between MEDIPOST and Kumho Petro
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and Kumho Petro 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 Kumho Petro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and Kumho Petro Chemical, you can compare the effects of market volatilities on MEDIPOST and Kumho Petro 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 Kumho Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and Kumho Petro.
Diversification Opportunities for MEDIPOST and Kumho Petro
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MEDIPOST and Kumho is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and Kumho Petro Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kumho Petro Chemical 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 Kumho Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kumho Petro Chemical has no effect on the direction of MEDIPOST i.e., MEDIPOST and Kumho Petro go up and down completely randomly.
Pair Corralation between MEDIPOST and Kumho Petro
Assuming the 90 days trading horizon MEDIPOST Co is expected to generate 1.58 times more return on investment than Kumho Petro. However, MEDIPOST is 1.58 times more volatile than Kumho Petro Chemical. It trades about 0.1 of its potential returns per unit of risk. Kumho Petro Chemical is currently generating about -0.09 per unit of risk. If you would invest 658,000 in MEDIPOST Co on October 17, 2024 and sell it today you would earn a total of 447,000 from holding MEDIPOST Co or generate 67.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.29% |
| Values | Daily Returns |
MEDIPOST Co vs. Kumho Petro Chemical
Performance |
| Timeline |
| MEDIPOST |
| Kumho Petro Chemical |
MEDIPOST and Kumho Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and Kumho Petro
The main advantage of trading using opposite MEDIPOST and Kumho Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, Kumho Petro 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 Kumho Petro will offset losses from the drop in Kumho Petro's long position.| MEDIPOST vs. TS Investment Corp | MEDIPOST vs. Alton Sports CoLtd | MEDIPOST vs. EBEST Investment Securities | MEDIPOST vs. Golden Bridge Investment |
| Kumho Petro vs. System and Application | Kumho Petro vs. KakaoBank Corp | Kumho Petro vs. Settlebank | Kumho Petro vs. Lotte Data Communication |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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