Correlation Between MEDIPOST and DONGKUK TED
Can any of the company-specific risk be diversified away by investing in both MEDIPOST and DONGKUK TED 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 DONGKUK TED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDIPOST Co and DONGKUK TED METAL, you can compare the effects of market volatilities on MEDIPOST and DONGKUK TED 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 DONGKUK TED. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDIPOST and DONGKUK TED.
Diversification Opportunities for MEDIPOST and DONGKUK TED
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MEDIPOST and DONGKUK is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MEDIPOST Co and DONGKUK TED METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DONGKUK TED METAL 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 DONGKUK TED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DONGKUK TED METAL has no effect on the direction of MEDIPOST i.e., MEDIPOST and DONGKUK TED go up and down completely randomly.
Pair Corralation between MEDIPOST and DONGKUK TED
Assuming the 90 days trading horizon MEDIPOST is expected to generate 14.03 times less return on investment than DONGKUK TED. In addition to that, MEDIPOST is 3.64 times more volatile than DONGKUK TED METAL. It trades about 0.01 of its total potential returns per unit of risk. DONGKUK TED METAL is currently generating about 0.26 per unit of volatility. If you would invest 596,000 in DONGKUK TED METAL on November 3, 2024 and sell it today you would earn a total of 34,000 from holding DONGKUK TED METAL or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDIPOST Co vs. DONGKUK TED METAL
Performance |
| Timeline |
| MEDIPOST |
| DONGKUK TED METAL |
MEDIPOST and DONGKUK TED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDIPOST and DONGKUK TED
The main advantage of trading using opposite MEDIPOST and DONGKUK TED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDIPOST position performs unexpectedly, DONGKUK TED 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 DONGKUK TED will offset losses from the drop in DONGKUK TED's long position.| MEDIPOST vs. Kukdo Chemical Co | MEDIPOST vs. PI Advanced Materials | MEDIPOST vs. LS Materials | MEDIPOST vs. Tae Kyung Chemical |
| DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. Samsung Electronics Co | DONGKUK TED vs. LG Energy Solution | DONGKUK TED 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |