Correlation Between MEDIPOST and Oscotec
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and Oscotec 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 Oscotec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and Oscotec, you can compare the effects of market volatilities on MEDIPOST and Oscotec 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 Oscotec. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and Oscotec.
Diversification Opportunities for MEDIPOST and Oscotec
Very good diversification
The 3 months correlation between MEDIPOST and Oscotec is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and Oscotec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oscotec 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 Oscotec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oscotec has no effect on the direction of MEDIPOST i.e., MEDIPOST and Oscotec go up and down completely randomly.
Pair Corralation between MEDIPOST and Oscotec
Assuming the 90 days trading horizon MEDIPOST Co is expected to under-perform the Oscotec. In addition to that, MEDIPOST is 2.69 times more volatile than Oscotec. It trades about -0.09 of its total potential returns per unit of risk. Oscotec is currently generating about 0.25 per unit of volatility. If you would invest 2,445,000 in Oscotec on October 23, 2024 and sell it today you would earn a total of 260,000 from holding Oscotec or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIPOST Co vs. Oscotec
Performance |
| Timeline |
| MEDIPOST |
| Oscotec |
MEDIPOST and Oscotec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and Oscotec
The main advantage of trading using opposite MEDIPOST and Oscotec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, Oscotec 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 Oscotec will offset losses from the drop in Oscotec's long position.| MEDIPOST vs. DONGKUK TED METAL | MEDIPOST vs. Seohee Construction Co | MEDIPOST vs. Heungkuk Metaltech CoLtd | MEDIPOST vs. Dongil Metal 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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