Correlation Between Carriesoft and MEDICOX
Can any of the company-specific risk be diversified away by investing in both Carriesoft 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 Carriesoft and MEDICOX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carriesoft Co and MEDICOX Co, you can compare the effects of market volatilities on Carriesoft 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 Carriesoft with a short position of MEDICOX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carriesoft and MEDICOX.
Diversification Opportunities for Carriesoft and MEDICOX
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carriesoft and MEDICOX is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Carriesoft Co and MEDICOX Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICOX and Carriesoft 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 Carriesoft 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 Carriesoft i.e., Carriesoft and MEDICOX go up and down completely randomly.
Pair Corralation between Carriesoft and MEDICOX
Assuming the 90 days trading horizon Carriesoft Co is expected to under-perform the MEDICOX. But the stock apears to be less risky and, when comparing its historical volatility, Carriesoft Co is 1.13 times less risky than MEDICOX. The stock trades about -0.06 of its potential returns per unit of risk. The MEDICOX Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 32,900 in MEDICOX Co on August 30, 2024 and sell it today you would earn a total of 2,800 from holding MEDICOX Co or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Carriesoft Co vs. MEDICOX Co
Performance |
| Timeline |
| Carriesoft |
| MEDICOX |
Carriesoft and MEDICOX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carriesoft and MEDICOX
The main advantage of trading using opposite Carriesoft and MEDICOX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carriesoft 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.| Carriesoft vs. Seohee Construction Co | Carriesoft vs. Han Kook Steel | Carriesoft vs. HJ ShipBuilding Construction | Carriesoft vs. Daekyung Machinery Engineering |
| MEDICOX vs. Vitzro Tech Co | MEDICOX vs. Busan Industrial Co | MEDICOX vs. Busan Ind | MEDICOX vs. Shinhan WTI Futures |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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