Correlation Between MediaZen and Korea Computer
Can any of the company-specific risk be diversified away by investing in both MediaZen and Korea Computer 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 MediaZen and Korea Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MediaZen and Korea Computer, you can compare the effects of market volatilities on MediaZen and Korea Computer 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 MediaZen with a short position of Korea Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of MediaZen and Korea Computer.
Diversification Opportunities for MediaZen and Korea Computer
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MediaZen and Korea is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding MediaZen and Korea Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Computer and MediaZen 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 MediaZen are associated (or correlated) with Korea Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Computer has no effect on the direction of MediaZen i.e., MediaZen and Korea Computer go up and down completely randomly.
Pair Corralation between MediaZen and Korea Computer
If you would invest 476,000 in Korea Computer on August 26, 2024 and sell it today you would earn a total of 69,000 from holding Korea Computer or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
MediaZen vs. Korea Computer
Performance |
| Timeline |
| MediaZen |
| Korea Computer |
MediaZen and Korea Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MediaZen and Korea Computer
The main advantage of trading using opposite MediaZen and Korea Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MediaZen position performs unexpectedly, Korea Computer 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 Korea Computer will offset losses from the drop in Korea Computer's long position.| MediaZen vs. Samsung Electronics Co | MediaZen vs. Samsung Electronics Co | MediaZen vs. LG Energy Solution | MediaZen vs. SK Hynix |
| Korea Computer vs. Dongil Technology | Korea Computer vs. People Technology | Korea Computer vs. Hanmi Semiconductor Co | Korea Computer vs. Genie Music |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |