Correlation Between MEDIPOST and Daesung Hi
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and Daesung Hi 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 Daesung Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and Daesung Hi Tech Co, you can compare the effects of market volatilities on MEDIPOST and Daesung Hi 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 Daesung Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and Daesung Hi.
Diversification Opportunities for MEDIPOST and Daesung Hi
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MEDIPOST and Daesung is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and Daesung Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Hi Tech 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 Daesung Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Hi Tech has no effect on the direction of MEDIPOST i.e., MEDIPOST and Daesung Hi go up and down completely randomly.
Pair Corralation between MEDIPOST and Daesung Hi
Assuming the 90 days trading horizon MEDIPOST Co is expected to generate 1.77 times more return on investment than Daesung Hi. However, MEDIPOST is 1.77 times more volatile than Daesung Hi Tech Co. It trades about 0.05 of its potential returns per unit of risk. Daesung Hi Tech Co is currently generating about -0.14 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIPOST Co vs. Daesung Hi Tech Co
Performance |
| Timeline |
| MEDIPOST |
| Daesung Hi Tech |
MEDIPOST and Daesung Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and Daesung Hi
The main advantage of trading using opposite MEDIPOST and Daesung Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, Daesung Hi 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 Daesung Hi will offset losses from the drop in Daesung Hi's long position.| MEDIPOST vs. Handok Clean Tech | MEDIPOST vs. Daejung Chemicals Metals | MEDIPOST vs. Kukil Metal Co | MEDIPOST vs. Tuksu Engineering ConstructionLtd |
| Daesung Hi vs. BGF Retail Co | Daesung Hi vs. Shinhan Inverse Silver | Daesung Hi vs. Echomarketing CoLtd | Daesung Hi vs. CKH Food Health |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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