Correlation Between MEDIPOST and THiRA UTECH
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and THiRA UTECH 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 THiRA UTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and THiRA UTECH LTD, you can compare the effects of market volatilities on MEDIPOST and THiRA UTECH 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 THiRA UTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and THiRA UTECH.
Diversification Opportunities for MEDIPOST and THiRA UTECH
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MEDIPOST and THiRA is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and THiRA UTECH LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THiRA UTECH LTD 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 THiRA UTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THiRA UTECH LTD has no effect on the direction of MEDIPOST i.e., MEDIPOST and THiRA UTECH go up and down completely randomly.
Pair Corralation between MEDIPOST and THiRA UTECH
Assuming the 90 days trading horizon MEDIPOST Co is expected to generate 1.91 times more return on investment than THiRA UTECH. However, MEDIPOST is 1.91 times more volatile than THiRA UTECH LTD. It trades about 0.14 of its potential returns per unit of risk. THiRA UTECH LTD is currently generating about 0.03 per unit of risk. If you would invest 600,000 in MEDIPOST Co on November 2, 2024 and sell it today you would earn a total of 561,000 from holding MEDIPOST Co or generate 93.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.97% |
| Values | Daily Returns |
MEDIPOST Co vs. THiRA UTECH LTD
Performance |
| Timeline |
| MEDIPOST |
| THiRA UTECH LTD |
MEDIPOST and THiRA UTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and THiRA UTECH
The main advantage of trading using opposite MEDIPOST and THiRA UTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, THiRA UTECH 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 THiRA UTECH will offset losses from the drop in THiRA UTECH's long position.| MEDIPOST vs. Handok Clean Tech | MEDIPOST vs. Daejung Chemicals Metals | MEDIPOST vs. Kukil Metal Co | MEDIPOST vs. Tuksu Engineering ConstructionLtd |
| THiRA UTECH vs. Moonbae Steel | THiRA UTECH vs. Iljin Display | THiRA UTECH vs. SeAH Besteel Corp | THiRA UTECH vs. Korea Computer |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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