Correlation Between Hyosung Chemical and MEDIANA CoLtd
Can any of the company-specific risk be diversified away by investing in both Hyosung Chemical 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 Hyosung Chemical and MEDIANA CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyosung Chemical Corp and MEDIANA CoLtd, you can compare the effects of market volatilities on Hyosung Chemical 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 Hyosung Chemical with a short position of MEDIANA CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyosung Chemical and MEDIANA CoLtd.
Diversification Opportunities for Hyosung Chemical and MEDIANA CoLtd
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hyosung and MEDIANA is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hyosung Chemical Corp and MEDIANA CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIANA CoLtd and Hyosung Chemical 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 Hyosung Chemical Corp 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 Hyosung Chemical i.e., Hyosung Chemical and MEDIANA CoLtd go up and down completely randomly.
Pair Corralation between Hyosung Chemical and MEDIANA CoLtd
Assuming the 90 days trading horizon Hyosung Chemical Corp is expected to under-perform the MEDIANA CoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Hyosung Chemical Corp is 1.07 times less risky than MEDIANA CoLtd. The stock trades about -0.08 of its potential returns per unit of risk. The MEDIANA CoLtd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 567,062 in MEDIANA CoLtd on September 12, 2024 and sell it today you would lose (94,062) from holding MEDIANA CoLtd or give up 16.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyosung Chemical Corp vs. MEDIANA CoLtd
Performance |
| Timeline |
| Hyosung Chemical Corp |
| MEDIANA CoLtd |
Hyosung Chemical and MEDIANA CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyosung Chemical and MEDIANA CoLtd
The main advantage of trading using opposite Hyosung Chemical and MEDIANA CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyosung Chemical 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.| Hyosung Chemical vs. LG Chem | Hyosung Chemical vs. Chunbo Co | Hyosung Chemical vs. DukSan Neolux CoLtd | Hyosung Chemical vs. LIG ES SPAC |
| MEDIANA CoLtd vs. Samsung Electronics Co | MEDIANA CoLtd vs. Samsung Electronics Co | MEDIANA CoLtd vs. SK Hynix | MEDIANA CoLtd vs. SK Holdings 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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