Correlation Between DONGKUK TED and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both DONGKUK TED 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 DONGKUK TED and MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DONGKUK TED METAL and MEDIPOST Co, you can compare the effects of market volatilities on DONGKUK TED 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 DONGKUK TED with a short position of MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of DONGKUK TED and MEDIPOST.
Diversification Opportunities for DONGKUK TED and MEDIPOST
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DONGKUK and MEDIPOST is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding DONGKUK TED METAL and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST and DONGKUK TED 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 DONGKUK TED METAL 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 DONGKUK TED i.e., DONGKUK TED and MEDIPOST go up and down completely randomly.
Pair Corralation between DONGKUK TED and MEDIPOST
Assuming the 90 days trading horizon DONGKUK TED METAL is expected to generate 0.21 times more return on investment than MEDIPOST. However, DONGKUK TED METAL is 4.88 times less risky than MEDIPOST. It trades about 0.25 of its potential returns per unit of risk. MEDIPOST Co is currently generating about -0.18 per unit of risk. If you would invest 610,000 in DONGKUK TED METAL on October 14, 2024 and sell it today you would earn a total of 36,000 from holding DONGKUK TED METAL or generate 5.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DONGKUK TED METAL vs. MEDIPOST Co
Performance |
| Timeline |
| DONGKUK TED METAL |
| MEDIPOST |
DONGKUK TED and MEDIPOST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DONGKUK TED and MEDIPOST
The main advantage of trading using opposite DONGKUK TED and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DONGKUK TED 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.| DONGKUK TED vs. Yura Tech Co | DONGKUK TED vs. Dongbu Insurance Co | DONGKUK TED vs. Narae Nanotech Corp | DONGKUK TED vs. N2Tech Co |
| MEDIPOST vs. Daewon Chemical Co | MEDIPOST vs. Hanwha Chemical Corp | MEDIPOST vs. Daiyang Metal Co | MEDIPOST vs. DONGKUK TED METAL |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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