Correlation Between Alton Sports and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Alton Sports 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 Alton Sports and MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alton Sports CoLtd and MEDIPOST Co, you can compare the effects of market volatilities on Alton Sports 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 Alton Sports with a short position of MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alton Sports and MEDIPOST.
Diversification Opportunities for Alton Sports and MEDIPOST
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alton and MEDIPOST is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Alton Sports CoLtd and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST and Alton Sports 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 Alton Sports CoLtd 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 Alton Sports i.e., Alton Sports and MEDIPOST go up and down completely randomly.
Pair Corralation between Alton Sports and MEDIPOST
Assuming the 90 days trading horizon Alton Sports CoLtd is expected to generate 0.27 times more return on investment than MEDIPOST. However, Alton Sports CoLtd is 3.65 times less risky than MEDIPOST. It trades about 0.24 of its potential returns per unit of risk. MEDIPOST Co is currently generating about -0.24 per unit of risk. If you would invest 143,600 in Alton Sports CoLtd on October 17, 2024 and sell it today you would earn a total of 10,800 from holding Alton Sports CoLtd or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alton Sports CoLtd vs. MEDIPOST Co
Performance |
| Timeline |
| Alton Sports CoLtd |
| MEDIPOST |
Alton Sports and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alton Sports and MEDIPOST
The main advantage of trading using opposite Alton Sports and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alton Sports 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.| Alton Sports vs. AeroSpace Technology of | Alton Sports vs. Pureun Mutual Savings | Alton Sports vs. DB Financial Investment | Alton Sports vs. BIT Computer Co |
| MEDIPOST vs. Korean Drug Co | MEDIPOST vs. Sewoon Medical Co | MEDIPOST vs. Hanmi Semiconductor Co | MEDIPOST vs. Seers Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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