Correlation Between Tae Kyung and Mirai Semiconductors
Can any of the company-specific risk be diversified away by investing in both Tae Kyung 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 Tae Kyung and Mirai Semiconductors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tae Kyung Chemical and Mirai Semiconductors Co, you can compare the effects of market volatilities on Tae Kyung 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 Tae Kyung with a short position of Mirai Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tae Kyung and Mirai Semiconductors.
Diversification Opportunities for Tae Kyung and Mirai Semiconductors
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tae and Mirai is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Tae Kyung 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 Tae Kyung 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 Tae Kyung 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 Tae Kyung i.e., Tae Kyung and Mirai Semiconductors go up and down completely randomly.
Pair Corralation between Tae Kyung and Mirai Semiconductors
Assuming the 90 days trading horizon Tae Kyung is expected to generate 1.86 times less return on investment than Mirai Semiconductors. But when comparing it to its historical volatility, Tae Kyung Chemical is 2.4 times less risky than Mirai Semiconductors. It trades about 0.01 of its potential returns per unit of risk. 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 Weak |
| Accuracy | 98.55% |
| Values | Daily Returns |
Tae Kyung Chemical vs. Mirai Semiconductors Co
Performance |
| Timeline |
| Tae Kyung Chemical |
| Mirai Semiconductors |
Tae Kyung and Mirai Semiconductors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tae Kyung and Mirai Semiconductors
The main advantage of trading using opposite Tae Kyung and Mirai Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tae Kyung 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.| Tae Kyung vs. Innowireless Co | Tae Kyung vs. Next Entertainment World | Tae Kyung vs. SAMG Entertainment Co | Tae Kyung vs. JYP Entertainment 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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