Correlation Between MEDIPOST and Ewon Comfortech
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and Ewon Comfortech 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 Ewon Comfortech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and Ewon Comfortech Co, you can compare the effects of market volatilities on MEDIPOST and Ewon Comfortech 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 Ewon Comfortech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and Ewon Comfortech.
Diversification Opportunities for MEDIPOST and Ewon Comfortech
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MEDIPOST and Ewon is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and Ewon Comfortech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ewon Comfortech 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 Ewon Comfortech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ewon Comfortech has no effect on the direction of MEDIPOST i.e., MEDIPOST and Ewon Comfortech go up and down completely randomly.
Pair Corralation between MEDIPOST and Ewon Comfortech
Assuming the 90 days trading horizon MEDIPOST Co is expected to generate 0.73 times more return on investment than Ewon Comfortech. However, MEDIPOST Co is 1.38 times less risky than Ewon Comfortech. It trades about 0.01 of its potential returns per unit of risk. Ewon Comfortech Co is currently generating about -0.06 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIPOST Co vs. Ewon Comfortech Co
Performance |
| Timeline |
| MEDIPOST |
| Ewon Comfortech |
MEDIPOST and Ewon Comfortech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and Ewon Comfortech
The main advantage of trading using opposite MEDIPOST and Ewon Comfortech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, Ewon Comfortech 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 Ewon Comfortech will offset losses from the drop in Ewon Comfortech's long position.| MEDIPOST vs. Heungkuk Metaltech CoLtd | MEDIPOST vs. Settlebank | MEDIPOST vs. Samsung Life Insurance | MEDIPOST vs. Dongil Metal Co |
| Ewon Comfortech vs. Namhwa Industrial Co | Ewon Comfortech vs. Daesung Industrial Co | Ewon Comfortech vs. Lee Ku Industrial | Ewon Comfortech vs. Taegu Broadcasting |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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