Correlation Between MEDIPOST and Samhyun
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and Samhyun 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 Samhyun into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and Samhyun, you can compare the effects of market volatilities on MEDIPOST and Samhyun 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 Samhyun. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and Samhyun.
Diversification Opportunities for MEDIPOST and Samhyun
Very good diversification
The 3 months correlation between MEDIPOST and Samhyun is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and Samhyun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samhyun 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 Samhyun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samhyun has no effect on the direction of MEDIPOST i.e., MEDIPOST and Samhyun go up and down completely randomly.
Pair Corralation between MEDIPOST and Samhyun
Assuming the 90 days trading horizon MEDIPOST Co is expected to generate 0.94 times more return on investment than Samhyun. However, MEDIPOST Co is 1.06 times less risky than Samhyun. It trades about 0.22 of its potential returns per unit of risk. Samhyun is currently generating about -0.02 per unit of risk. If you would invest 648,000 in MEDIPOST Co on September 27, 2024 and sell it today you would earn a total of 518,000 from holding MEDIPOST Co or generate 79.94% 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. Samhyun
Performance |
| Timeline |
| MEDIPOST |
| Samhyun |
MEDIPOST and Samhyun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and Samhyun
The main advantage of trading using opposite MEDIPOST and Samhyun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, Samhyun 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 Samhyun will offset losses from the drop in Samhyun's long position.The idea behind MEDIPOST Co and Samhyun pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Samhyun vs. Samsung Electronics Co | Samhyun vs. Samsung Electronics Co | Samhyun vs. LG Energy Solution | Samhyun vs. SK Hynix |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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