Correlation Between Stic Investments and MEDIPOST
Can any of the company-specific risk be diversified away by investing in both Stic Investments 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 Stic Investments and MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and MEDIPOST Co, you can compare the effects of market volatilities on Stic Investments 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 Stic Investments with a short position of MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and MEDIPOST.
Diversification Opportunities for Stic Investments and MEDIPOST
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stic and MEDIPOST is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST and Stic Investments 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 Stic Investments 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 Stic Investments i.e., Stic Investments and MEDIPOST go up and down completely randomly.
Pair Corralation between Stic Investments and MEDIPOST
Assuming the 90 days trading horizon Stic Investments is expected to generate 8.86 times less return on investment than MEDIPOST. But when comparing it to its historical volatility, Stic Investments is 4.6 times less risky than MEDIPOST. It trades about 0.13 of its potential returns per unit of risk. MEDIPOST Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 871,000 in MEDIPOST Co on October 8, 2024 and sell it today you would earn a total of 334,000 from holding MEDIPOST Co or generate 38.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Stic Investments vs. MEDIPOST Co
Performance |
Timeline |
Stic Investments |
MEDIPOST |
Stic Investments and MEDIPOST Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Stic Investments and MEDIPOST
The main advantage of trading using opposite Stic Investments and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments 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.Stic Investments vs. Yura Tech Co | Stic Investments vs. Aprogen Healthcare Games | Stic Investments vs. LG Household Healthcare | Stic Investments vs. Osang Healthcare Co,Ltd |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |