Correlation Between MEDIPOST and Innometry
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and Innometry 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 Innometry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and Innometry Co, you can compare the effects of market volatilities on MEDIPOST and Innometry 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 Innometry. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and Innometry.
Diversification Opportunities for MEDIPOST and Innometry
Excellent diversification
The 3 months correlation between MEDIPOST and Innometry is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and Innometry Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innometry 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 Innometry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innometry has no effect on the direction of MEDIPOST i.e., MEDIPOST and Innometry go up and down completely randomly.
Pair Corralation between MEDIPOST and Innometry
Assuming the 90 days trading horizon MEDIPOST Co is expected to generate 2.63 times more return on investment than Innometry. However, MEDIPOST is 2.63 times more volatile than Innometry Co. It trades about 0.01 of its potential returns per unit of risk. Innometry Co is currently generating about -0.03 per unit of risk. If you would invest 1,133,000 in MEDIPOST Co on November 2, 2024 and sell it today you would lose (13,000) from holding MEDIPOST Co or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIPOST Co vs. Innometry Co
Performance |
| Timeline |
| MEDIPOST |
| Innometry |
MEDIPOST and Innometry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and Innometry
The main advantage of trading using opposite MEDIPOST and Innometry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, Innometry 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 Innometry will offset losses from the drop in Innometry's long position.| MEDIPOST vs. Heungkuk Metaltech CoLtd | MEDIPOST vs. Settlebank | MEDIPOST vs. Samsung Life Insurance | MEDIPOST vs. Dongil Metal Co |
| Innometry vs. GS Engineering Construction | Innometry vs. Digital Power Communications | Innometry vs. Hyundai Engineering Construction | Innometry vs. KEPCO Engineering Construction |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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