Correlation Between Sangsin Energy and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Sangsin Energy and MEDIPOST 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 Sangsin Energy and MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsin Energy Display and MEDIPOST Co, you can compare the effects of market volatilities on Sangsin Energy and MEDIPOST 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 Sangsin Energy with a short position of MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsin Energy and MEDIPOST.
Diversification Opportunities for Sangsin Energy and MEDIPOST
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sangsin and MEDIPOST is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sangsin Energy Display and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST and Sangsin Energy 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 Sangsin Energy Display are associated (or correlated) with MEDIPOST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIPOST has no effect on the direction of Sangsin Energy i.e., Sangsin Energy and MEDIPOST go up and down completely randomly.
Pair Corralation between Sangsin Energy and MEDIPOST
Assuming the 90 days trading horizon Sangsin Energy is expected to generate 72.84 times less return on investment than MEDIPOST. But when comparing it to its historical volatility, Sangsin Energy Display is 1.74 times less risky than MEDIPOST. It trades about 0.0 of its potential returns per unit of risk. MEDIPOST Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,026,000 in MEDIPOST Co on October 28, 2024 and sell it today you would earn a total of 135,000 from holding MEDIPOST Co or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsin Energy Display vs. MEDIPOST Co
Performance |
| Timeline |
| Sangsin Energy Display |
| MEDIPOST |
Sangsin Energy and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsin Energy and MEDIPOST
The main advantage of trading using opposite Sangsin Energy and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsin Energy position performs unexpectedly, MEDIPOST 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 MEDIPOST will offset losses from the drop in MEDIPOST's long position.| Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. Samsung Electronics Co | Sangsin Energy vs. KB Financial Group | Sangsin Energy vs. Shinhan Financial Group |
| MEDIPOST vs. Korean Air Lines | MEDIPOST vs. Top Material Co | MEDIPOST vs. WONIK Materials CoLtd | MEDIPOST vs. Dongbang Transport Logistics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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