Correlation Between KIWI Media and Miwon Chemicals
Can any of the company-specific risk be diversified away by investing in both KIWI Media and Miwon Chemicals 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 KIWI Media and Miwon Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KIWI Media Group and Miwon Chemicals Co, you can compare the effects of market volatilities on KIWI Media and Miwon Chemicals 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 KIWI Media with a short position of Miwon Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of KIWI Media and Miwon Chemicals.
Diversification Opportunities for KIWI Media and Miwon Chemicals
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KIWI and Miwon is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding KIWI Media Group and Miwon Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemicals and KIWI Media 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 KIWI Media Group are associated (or correlated) with Miwon Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miwon Chemicals has no effect on the direction of KIWI Media i.e., KIWI Media and Miwon Chemicals go up and down completely randomly.
Pair Corralation between KIWI Media and Miwon Chemicals
Assuming the 90 days trading horizon KIWI Media Group is expected to under-perform the Miwon Chemicals. In addition to that, KIWI Media is 5.51 times more volatile than Miwon Chemicals Co. It trades about 0.0 of its total potential returns per unit of risk. Miwon Chemicals Co is currently generating about 0.05 per unit of volatility. If you would invest 6,213,119 in Miwon Chemicals Co on August 29, 2024 and sell it today you would earn a total of 1,566,881 from holding Miwon Chemicals Co or generate 25.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KIWI Media Group vs. Miwon Chemicals Co
Performance |
| Timeline |
| KIWI Media Group |
| Miwon Chemicals |
KIWI Media and Miwon Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KIWI Media and Miwon Chemicals
The main advantage of trading using opposite KIWI Media and Miwon Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KIWI Media position performs unexpectedly, Miwon Chemicals 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 Miwon Chemicals will offset losses from the drop in Miwon Chemicals' long position.| KIWI Media vs. Samsung Electronics Co | KIWI Media vs. Samsung Electronics Co | KIWI Media vs. LG Energy Solution | KIWI Media vs. SK Hynix |
| Miwon Chemicals vs. INNOX Advanced Materials | Miwon Chemicals vs. RF Materials Co | Miwon Chemicals vs. Hana Materials | Miwon Chemicals vs. Daejoo Electronic Materials |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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