Correlation Between Cytogen and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Cytogen 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 Cytogen and MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytogen and MEDIPOST Co, you can compare the effects of market volatilities on Cytogen 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 Cytogen with a short position of MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytogen and MEDIPOST.
Diversification Opportunities for Cytogen and MEDIPOST
Average diversification
The 3 months correlation between Cytogen and MEDIPOST is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cytogen and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST and Cytogen 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 Cytogen 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 Cytogen i.e., Cytogen and MEDIPOST go up and down completely randomly.
Pair Corralation between Cytogen and MEDIPOST
Assuming the 90 days trading horizon Cytogen is expected to under-perform the MEDIPOST. In addition to that, Cytogen is 1.1 times more volatile than MEDIPOST Co. It trades about -0.05 of its total potential returns per unit of risk. MEDIPOST Co is currently generating about -0.01 per unit of volatility. If you would invest 1,301,003 in MEDIPOST Co on September 2, 2024 and sell it today you would lose (390,003) from holding MEDIPOST Co or give up 29.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cytogen vs. MEDIPOST Co
Performance |
| Timeline |
| Cytogen |
| MEDIPOST |
Cytogen and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytogen and MEDIPOST
The main advantage of trading using opposite Cytogen and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytogen 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.| Cytogen vs. Kukdo Chemical Co | Cytogen vs. LG Chemicals | Cytogen vs. Aprogen Healthcare Games | Cytogen vs. Kakao Games Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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