Correlation Between Ewon Comfortech and MEDICOX
Can any of the company-specific risk be diversified away by investing in both Ewon Comfortech and MEDICOX 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 Ewon Comfortech and MEDICOX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ewon Comfortech Co and MEDICOX Co, you can compare the effects of market volatilities on Ewon Comfortech and MEDICOX 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 Ewon Comfortech with a short position of MEDICOX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ewon Comfortech and MEDICOX.
Diversification Opportunities for Ewon Comfortech and MEDICOX
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ewon and MEDICOX is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ewon Comfortech Co and MEDICOX Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICOX and Ewon Comfortech 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 Ewon Comfortech Co are associated (or correlated) with MEDICOX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICOX has no effect on the direction of Ewon Comfortech i.e., Ewon Comfortech and MEDICOX go up and down completely randomly.
Pair Corralation between Ewon Comfortech and MEDICOX
Assuming the 90 days trading horizon Ewon Comfortech Co is expected to under-perform the MEDICOX. But the stock apears to be less risky and, when comparing its historical volatility, Ewon Comfortech Co is 1.11 times less risky than MEDICOX. The stock trades about -0.06 of its potential returns per unit of risk. The MEDICOX Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 160,700 in MEDICOX Co on November 19, 2024 and sell it today you would lose (132,600) from holding MEDICOX Co or give up 82.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Ewon Comfortech Co vs. MEDICOX Co
Performance |
| Timeline |
| Ewon Comfortech |
| MEDICOX |
Ewon Comfortech and MEDICOX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ewon Comfortech and MEDICOX
The main advantage of trading using opposite Ewon Comfortech and MEDICOX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ewon Comfortech position performs unexpectedly, MEDICOX 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 MEDICOX will offset losses from the drop in MEDICOX's long position.| Ewon Comfortech vs. Hankook Steel Co | Ewon Comfortech vs. BooKook Steel Co | Ewon Comfortech vs. Polaris Office Corp | Ewon Comfortech vs. Hanil Iron Steel |
| MEDICOX vs. Hyundai Industrial Co | MEDICOX vs. Kukil Metal Co | MEDICOX vs. Chorokbaem Healthcare Co | MEDICOX vs. Namhwa Industrial Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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