Correlation Between Seers Technology and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Seers Technology and MEDIPOST 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 Seers Technology and MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seers Technology and MEDIPOST Co, you can compare the effects of market volatilities on Seers Technology and MEDIPOST 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 Seers Technology with a short position of MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seers Technology and MEDIPOST.
Diversification Opportunities for Seers Technology and MEDIPOST
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Seers and MEDIPOST is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Seers Technology and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST and Seers Technology 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 Seers Technology are associated (or correlated) with MEDIPOST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIPOST has no effect on the direction of Seers Technology i.e., Seers Technology and MEDIPOST go up and down completely randomly.
Pair Corralation between Seers Technology and MEDIPOST
Assuming the 90 days trading horizon Seers Technology is expected to generate 0.57 times more return on investment than MEDIPOST. However, Seers Technology is 1.75 times less risky than MEDIPOST. It trades about 0.14 of its potential returns per unit of risk. MEDIPOST Co is currently generating about -0.24 per unit of risk. If you would invest 1,058,000 in Seers Technology on October 17, 2024 and sell it today you would earn a total of 90,000 from holding Seers Technology or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seers Technology vs. MEDIPOST Co
Performance |
| Timeline |
| Seers Technology |
| MEDIPOST |
Seers Technology and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seers Technology and MEDIPOST
The main advantage of trading using opposite Seers Technology and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seers Technology position performs unexpectedly, MEDIPOST 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 MEDIPOST will offset losses from the drop in MEDIPOST's long position.| Seers Technology vs. Samsung Electronics Co | Seers Technology vs. Samsung Electronics Co | Seers Technology vs. LG Energy Solution | Seers Technology vs. SK Hynix |
| MEDIPOST vs. Korean Drug Co | MEDIPOST vs. Sewoon Medical Co | MEDIPOST vs. Hanmi Semiconductor Co | MEDIPOST vs. Seers Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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