Correlation Between MEDIPOST and Vina Technology
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and Vina Technology 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 Vina Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and Vina Technology Co, you can compare the effects of market volatilities on MEDIPOST and Vina Technology 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 Vina Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and Vina Technology.
Diversification Opportunities for MEDIPOST and Vina Technology
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MEDIPOST and Vina is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and Vina Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vina Technology 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 Vina Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vina Technology has no effect on the direction of MEDIPOST i.e., MEDIPOST and Vina Technology go up and down completely randomly.
Pair Corralation between MEDIPOST and Vina Technology
Assuming the 90 days trading horizon MEDIPOST Co is expected to generate 1.37 times more return on investment than Vina Technology. However, MEDIPOST is 1.37 times more volatile than Vina Technology Co. It trades about 0.05 of its potential returns per unit of risk. Vina Technology Co is currently generating about -0.01 per unit of risk. If you would invest 1,133,000 in MEDIPOST Co on November 2, 2024 and sell it today you would earn a total of 28,000 from holding MEDIPOST Co or generate 2.47% 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. Vina Technology Co
Performance |
| Timeline |
| MEDIPOST |
| Vina Technology |
MEDIPOST and Vina Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and Vina Technology
The main advantage of trading using opposite MEDIPOST and Vina Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, Vina Technology 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 Vina Technology will offset losses from the drop in Vina Technology's long position.| MEDIPOST vs. Handok Clean Tech | MEDIPOST vs. Daejung Chemicals Metals | MEDIPOST vs. Kukil Metal Co | MEDIPOST vs. Tuksu Engineering ConstructionLtd |
| Vina Technology vs. Daejoo Electronic Materials | Vina Technology vs. Parksystems Corp | Vina Technology vs. BH Co | Vina Technology vs. Partron 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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