Correlation Between SEOJEON ELECTRIC and MEDIPOST

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SEOJEON ELECTRIC 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 SEOJEON ELECTRIC and MEDIPOST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SEOJEON ELECTRIC MACHINERY and MEDIPOST Co, you can compare the effects of market volatilities on SEOJEON ELECTRIC 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 SEOJEON ELECTRIC with a short position of MEDIPOST. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEOJEON ELECTRIC and MEDIPOST.

Diversification Opportunities for SEOJEON ELECTRIC and MEDIPOST

-0.51
  Correlation Coefficient

Excellent diversification

The 3 months correlation between SEOJEON and MEDIPOST is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SEOJEON ELECTRIC MACHINERY and MEDIPOST Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIPOST and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC MACHINERY 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 SEOJEON ELECTRIC i.e., SEOJEON ELECTRIC and MEDIPOST go up and down completely randomly.

Pair Corralation between SEOJEON ELECTRIC and MEDIPOST

Assuming the 90 days trading horizon SEOJEON ELECTRIC MACHINERY is expected to under-perform the MEDIPOST. But the stock apears to be less risky and, when comparing its historical volatility, SEOJEON ELECTRIC MACHINERY is 1.62 times less risky than MEDIPOST. The stock trades about -0.01 of its potential returns per unit of risk. The MEDIPOST Co is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  575,000  in MEDIPOST Co on October 4, 2024 and sell it today you would earn a total of  577,000  from holding MEDIPOST Co or generate 100.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

SEOJEON ELECTRIC MACHINERY  vs.  MEDIPOST Co

 Performance 
       Timeline  
SEOJEON ELECTRIC MAC 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SEOJEON ELECTRIC MACHINERY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SEOJEON ELECTRIC is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
MEDIPOST 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in MEDIPOST Co are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, MEDIPOST sustained solid returns over the last few months and may actually be approaching a breakup point.

SEOJEON ELECTRIC and MEDIPOST Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SEOJEON ELECTRIC and MEDIPOST

The main advantage of trading using opposite SEOJEON ELECTRIC and MEDIPOST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEOJEON ELECTRIC 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.
The idea behind SEOJEON ELECTRIC MACHINERY and MEDIPOST Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
CEOs Directory
Screen CEOs from public companies around the world
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments