Correlation Between Korea Petro and Mirai Semiconductors
Can any of the company-specific risk be diversified away by investing in both Korea Petro and Mirai Semiconductors 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 Korea Petro and Mirai Semiconductors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Petro Chemical and Mirai Semiconductors Co, you can compare the effects of market volatilities on Korea Petro and Mirai Semiconductors 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 Korea Petro with a short position of Mirai Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Petro and Mirai Semiconductors.
Diversification Opportunities for Korea Petro and Mirai Semiconductors
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Korea and Mirai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Korea Petro Chemical and Mirai Semiconductors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirai Semiconductors and Korea Petro 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 Korea Petro Chemical are associated (or correlated) with Mirai Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirai Semiconductors has no effect on the direction of Korea Petro i.e., Korea Petro and Mirai Semiconductors go up and down completely randomly.
Pair Corralation between Korea Petro and Mirai Semiconductors
Assuming the 90 days trading horizon Korea Petro Chemical is expected to under-perform the Mirai Semiconductors. But the stock apears to be less risky and, when comparing its historical volatility, Korea Petro Chemical is 1.68 times less risky than Mirai Semiconductors. The stock trades about -0.04 of its potential returns per unit of risk. The Mirai Semiconductors Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,560,000 in Mirai Semiconductors Co on October 7, 2024 and sell it today you would lose (415,000) from holding Mirai Semiconductors Co or give up 26.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.55% |
| Values | Daily Returns |
Korea Petro Chemical vs. Mirai Semiconductors Co
Performance |
| Timeline |
| Korea Petro Chemical |
| Mirai Semiconductors |
Korea Petro and Mirai Semiconductors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Korea Petro and Mirai Semiconductors
The main advantage of trading using opposite Korea Petro and Mirai Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Petro position performs unexpectedly, Mirai Semiconductors 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 Mirai Semiconductors will offset losses from the drop in Mirai Semiconductors' long position.| Korea Petro vs. LG Chemicals | Korea Petro vs. POSCO Holdings | Korea Petro vs. Hanwha Solutions | Korea Petro vs. Lotte Chemical Corp |
| Mirai Semiconductors vs. Samsung Electronics Co | Mirai Semiconductors vs. Samsung Electronics Co | Mirai Semiconductors vs. LG Energy Solution | Mirai Semiconductors vs. SK Hynix |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |