Correlation Between Shinhan WTI and MEDICOX
Can any of the company-specific risk be diversified away by investing in both Shinhan WTI 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 Shinhan WTI and MEDICOX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinhan WTI Futures and MEDICOX Co, you can compare the effects of market volatilities on Shinhan WTI 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 Shinhan WTI with a short position of MEDICOX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinhan WTI and MEDICOX.
Diversification Opportunities for Shinhan WTI and MEDICOX
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shinhan and MEDICOX is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Shinhan WTI Futures and MEDICOX Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICOX and Shinhan WTI 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 Shinhan WTI Futures 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 Shinhan WTI i.e., Shinhan WTI and MEDICOX go up and down completely randomly.
Pair Corralation between Shinhan WTI and MEDICOX
Assuming the 90 days trading horizon Shinhan WTI Futures is expected to generate 0.35 times more return on investment than MEDICOX. However, Shinhan WTI Futures is 2.84 times less risky than MEDICOX. It trades about 0.02 of its potential returns per unit of risk. MEDICOX Co is currently generating about -0.05 per unit of risk. If you would invest 681,000 in Shinhan WTI Futures on September 1, 2024 and sell it today you would earn a total of 40,500 from holding Shinhan WTI Futures or generate 5.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.1% |
| Values | Daily Returns |
Shinhan WTI Futures vs. MEDICOX Co
Performance |
| Timeline |
| Shinhan WTI Futures |
| MEDICOX |
Shinhan WTI and MEDICOX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinhan WTI and MEDICOX
The main advantage of trading using opposite Shinhan WTI and MEDICOX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinhan WTI 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.| Shinhan WTI vs. Kaonmedia Co | Shinhan WTI vs. YG Entertainment | Shinhan WTI vs. Dongil Metal Co | Shinhan WTI vs. DONGKUK TED METAL |
| MEDICOX vs. Daejung Chemicals Metals | MEDICOX vs. Lotte Energy Materials | MEDICOX vs. RF Materials Co | MEDICOX vs. MetaLabs 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |