Correlation Between Sewoon Medical and Asiana Airlines
Can any of the company-specific risk be diversified away by investing in both Sewoon Medical and Asiana Airlines 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 Sewoon Medical and Asiana Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sewoon Medical Co and Asiana Airlines, you can compare the effects of market volatilities on Sewoon Medical and Asiana Airlines 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 Sewoon Medical with a short position of Asiana Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sewoon Medical and Asiana Airlines.
Diversification Opportunities for Sewoon Medical and Asiana Airlines
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sewoon and Asiana is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sewoon Medical Co and Asiana Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiana Airlines and Sewoon Medical 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 Sewoon Medical Co are associated (or correlated) with Asiana Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiana Airlines has no effect on the direction of Sewoon Medical i.e., Sewoon Medical and Asiana Airlines go up and down completely randomly.
Pair Corralation between Sewoon Medical and Asiana Airlines
Assuming the 90 days trading horizon Sewoon Medical Co is expected to generate 0.83 times more return on investment than Asiana Airlines. However, Sewoon Medical Co is 1.2 times less risky than Asiana Airlines. It trades about 0.0 of its potential returns per unit of risk. Asiana Airlines is currently generating about -0.01 per unit of risk. If you would invest 269,720 in Sewoon Medical Co on August 29, 2024 and sell it today you would lose (12,720) from holding Sewoon Medical Co or give up 4.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sewoon Medical Co vs. Asiana Airlines
Performance |
| Timeline |
| Sewoon Medical |
| Asiana Airlines |
Sewoon Medical and Asiana Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sewoon Medical and Asiana Airlines
The main advantage of trading using opposite Sewoon Medical and Asiana Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sewoon Medical position performs unexpectedly, Asiana Airlines 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 Asiana Airlines will offset losses from the drop in Asiana Airlines' long position.| Sewoon Medical vs. Medy Tox | Sewoon Medical vs. Busan Industrial Co | Sewoon Medical vs. Busan Ind | Sewoon Medical vs. Mirae Asset Daewoo |
| Asiana Airlines vs. Home Center Holdings | Asiana Airlines vs. Hyunwoo Industrial Co | Asiana Airlines vs. Daelim Industrial Co | Asiana Airlines vs. Seoyon Topmetal 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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