Correlation Between MEDIPOST and Sambo Corrugated
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and Sambo Corrugated 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 Sambo Corrugated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and Sambo Corrugated Board, you can compare the effects of market volatilities on MEDIPOST and Sambo Corrugated 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 Sambo Corrugated. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and Sambo Corrugated.
Diversification Opportunities for MEDIPOST and Sambo Corrugated
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MEDIPOST and Sambo is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and Sambo Corrugated Board in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sambo Corrugated Board 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 Sambo Corrugated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sambo Corrugated Board has no effect on the direction of MEDIPOST i.e., MEDIPOST and Sambo Corrugated go up and down completely randomly.
Pair Corralation between MEDIPOST and Sambo Corrugated
Assuming the 90 days trading horizon MEDIPOST Co is expected to generate 7.35 times more return on investment than Sambo Corrugated. However, MEDIPOST is 7.35 times more volatile than Sambo Corrugated Board. It trades about 0.14 of its potential returns per unit of risk. Sambo Corrugated Board is currently generating about -0.2 per unit of risk. If you would invest 739,000 in MEDIPOST Co on November 2, 2024 and sell it today you would earn a total of 422,000 from holding MEDIPOST Co or generate 57.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIPOST Co vs. Sambo Corrugated Board
Performance |
| Timeline |
| MEDIPOST |
| Sambo Corrugated Board |
MEDIPOST and Sambo Corrugated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and Sambo Corrugated
The main advantage of trading using opposite MEDIPOST and Sambo Corrugated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, Sambo Corrugated 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 Sambo Corrugated will offset losses from the drop in Sambo Corrugated's long position.| MEDIPOST vs. Heungkuk Metaltech CoLtd | MEDIPOST vs. Settlebank | MEDIPOST vs. Samsung Life Insurance | MEDIPOST vs. Dongil Metal Co |
| Sambo Corrugated vs. SH Energy Chemical | Sambo Corrugated vs. Sung Bo Chemicals | Sambo Corrugated vs. Youngchang Chemical Co | Sambo Corrugated vs. Youngbo Chemical 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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