Correlation Between Kisan Telecom and Miwon Chemical
Can any of the company-specific risk be diversified away by investing in both Kisan Telecom and Miwon Chemical 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 Kisan Telecom and Miwon Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kisan Telecom Co and Miwon Chemical, you can compare the effects of market volatilities on Kisan Telecom and Miwon Chemical 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 Kisan Telecom with a short position of Miwon Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kisan Telecom and Miwon Chemical.
Diversification Opportunities for Kisan Telecom and Miwon Chemical
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kisan and Miwon is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kisan Telecom Co and Miwon Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemical and Kisan Telecom 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 Kisan Telecom Co are associated (or correlated) with Miwon Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miwon Chemical has no effect on the direction of Kisan Telecom i.e., Kisan Telecom and Miwon Chemical go up and down completely randomly.
Pair Corralation between Kisan Telecom and Miwon Chemical
Assuming the 90 days trading horizon Kisan Telecom Co is expected to generate 1.52 times more return on investment than Miwon Chemical. However, Kisan Telecom is 1.52 times more volatile than Miwon Chemical. It trades about 0.15 of its potential returns per unit of risk. Miwon Chemical is currently generating about -0.07 per unit of risk. If you would invest 175,800 in Kisan Telecom Co on November 3, 2024 and sell it today you would earn a total of 4,600 from holding Kisan Telecom Co or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kisan Telecom Co vs. Miwon Chemical
Performance |
| Timeline |
| Kisan Telecom |
| Miwon Chemical |
Kisan Telecom and Miwon Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kisan Telecom and Miwon Chemical
The main advantage of trading using opposite Kisan Telecom and Miwon Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kisan Telecom position performs unexpectedly, Miwon Chemical 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 Chemical will offset losses from the drop in Miwon Chemical's long position.| Kisan Telecom vs. Daejoo Electronic Materials | Kisan Telecom vs. PJ Electronics Co | Kisan Telecom vs. Korea Electronic Certification | Kisan Telecom vs. BGF Retail Co |
| Miwon Chemical vs. Dongil Metal Co | Miwon Chemical vs. E Investment Development | Miwon Chemical vs. ABOV Semiconductor Co | Miwon Chemical vs. Stic Investments |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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