Correlation Between Daesung Hi and MEDIANA CoLtd
Can any of the company-specific risk be diversified away by investing in both Daesung Hi and MEDIANA CoLtd 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 Daesung Hi and MEDIANA CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daesung Hi Tech Co and MEDIANA CoLtd, you can compare the effects of market volatilities on Daesung Hi and MEDIANA CoLtd 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 Daesung Hi with a short position of MEDIANA CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daesung Hi and MEDIANA CoLtd.
Diversification Opportunities for Daesung Hi and MEDIANA CoLtd
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Daesung and MEDIANA is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Daesung Hi Tech Co and MEDIANA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIANA CoLtd and Daesung Hi 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 Daesung Hi Tech Co are associated (or correlated) with MEDIANA CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIANA CoLtd has no effect on the direction of Daesung Hi i.e., Daesung Hi and MEDIANA CoLtd go up and down completely randomly.
Pair Corralation between Daesung Hi and MEDIANA CoLtd
Assuming the 90 days trading horizon Daesung Hi Tech Co is expected to under-perform the MEDIANA CoLtd. In addition to that, Daesung Hi is 1.25 times more volatile than MEDIANA CoLtd. It trades about -0.06 of its total potential returns per unit of risk. MEDIANA CoLtd is currently generating about -0.03 per unit of volatility. If you would invest 624,000 in MEDIANA CoLtd on September 3, 2024 and sell it today you would lose (113,000) from holding MEDIANA CoLtd or give up 18.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daesung Hi Tech Co vs. MEDIANA CoLtd
Performance |
| Timeline |
| Daesung Hi Tech |
| MEDIANA CoLtd |
Daesung Hi and MEDIANA CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daesung Hi and MEDIANA CoLtd
The main advantage of trading using opposite Daesung Hi and MEDIANA CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daesung Hi position performs unexpectedly, MEDIANA CoLtd 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 MEDIANA CoLtd will offset losses from the drop in MEDIANA CoLtd's long position.| Daesung Hi vs. Bohae Brewery | Daesung Hi vs. Clean Science co | Daesung Hi vs. Korea Investment Holdings | Daesung Hi vs. Nh Investment And |
| MEDIANA CoLtd vs. Eagle Veterinary Technology | MEDIANA CoLtd vs. SBI Investment KOREA | MEDIANA CoLtd vs. Orbitech Co | MEDIANA CoLtd vs. KMH Hitech 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |