Correlation Between SKONEC Entertainment and MEDICOX
Can any of the company-specific risk be diversified away by investing in both SKONEC Entertainment and MEDICOX 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 SKONEC Entertainment and MEDICOX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKONEC Entertainment Co and MEDICOX Co, you can compare the effects of market volatilities on SKONEC Entertainment and MEDICOX 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 SKONEC Entertainment with a short position of MEDICOX. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKONEC Entertainment and MEDICOX.
Diversification Opportunities for SKONEC Entertainment and MEDICOX
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SKONEC and MEDICOX is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SKONEC Entertainment Co and MEDICOX Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICOX and SKONEC Entertainment 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 SKONEC Entertainment Co are associated (or correlated) with MEDICOX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICOX has no effect on the direction of SKONEC Entertainment i.e., SKONEC Entertainment and MEDICOX go up and down completely randomly.
Pair Corralation between SKONEC Entertainment and MEDICOX
Assuming the 90 days trading horizon SKONEC Entertainment Co is expected to generate 0.66 times more return on investment than MEDICOX. However, SKONEC Entertainment Co is 1.51 times less risky than MEDICOX. It trades about -0.07 of its potential returns per unit of risk. MEDICOX Co is currently generating about -0.06 per unit of risk. If you would invest 1,360,000 in SKONEC Entertainment Co on September 3, 2024 and sell it today you would lose (1,053,500) from holding SKONEC Entertainment Co or give up 77.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
SKONEC Entertainment Co vs. MEDICOX Co
Performance |
| Timeline |
| SKONEC Entertainment |
| MEDICOX |
SKONEC Entertainment and MEDICOX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SKONEC Entertainment and MEDICOX
The main advantage of trading using opposite SKONEC Entertainment and MEDICOX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKONEC Entertainment position performs unexpectedly, MEDICOX 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 MEDICOX will offset losses from the drop in MEDICOX's long position.| SKONEC Entertainment vs. Posco ICT | SKONEC Entertainment vs. Devsisters corporation | SKONEC Entertainment vs. Alchera | SKONEC Entertainment vs. Nice Information Telecommunication |
| MEDICOX vs. Nasmedia Co | MEDICOX vs. Alton Sports CoLtd | MEDICOX vs. SKONEC Entertainment Co | MEDICOX vs. ChipsMedia |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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