Correlation Between DC Media and MEDIANA CoLtd
Can any of the company-specific risk be diversified away by investing in both DC Media 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 DC Media and MEDIANA CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DC Media Co and MEDIANA CoLtd, you can compare the effects of market volatilities on DC Media 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 DC Media with a short position of MEDIANA CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of DC Media and MEDIANA CoLtd.
Diversification Opportunities for DC Media and MEDIANA CoLtd
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 263720 and MEDIANA is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding DC Media Co and MEDIANA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIANA CoLtd and DC Media 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 DC Media 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 DC Media i.e., DC Media and MEDIANA CoLtd go up and down completely randomly.
Pair Corralation between DC Media and MEDIANA CoLtd
Assuming the 90 days trading horizon DC Media Co is expected to generate 0.63 times more return on investment than MEDIANA CoLtd. However, DC Media Co is 1.59 times less risky than MEDIANA CoLtd. It trades about 0.11 of its potential returns per unit of risk. MEDIANA CoLtd is currently generating about 0.06 per unit of risk. If you would invest 1,750,000 in DC Media Co on August 25, 2024 and sell it today you would earn a total of 105,000 from holding DC Media Co or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DC Media Co vs. MEDIANA CoLtd
Performance |
| Timeline |
| DC Media |
| MEDIANA CoLtd |
DC Media and MEDIANA CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DC Media and MEDIANA CoLtd
The main advantage of trading using opposite DC Media and MEDIANA CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DC Media 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.| DC Media vs. DB Financial Investment | DC Media vs. Korea Information Engineering | DC Media vs. Samyang Foods Co | DC Media vs. System and Application |
| MEDIANA CoLtd vs. Medy Tox | MEDIANA CoLtd vs. Genexine | MEDIANA CoLtd vs. Busan Industrial Co | MEDIANA CoLtd vs. Busan Ind |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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