Correlation Between Seohee Construction and Miwon Chemicals
Can any of the company-specific risk be diversified away by investing in both Seohee Construction 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 Seohee Construction and Miwon Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seohee Construction Co and Miwon Chemicals Co, you can compare the effects of market volatilities on Seohee Construction 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 Seohee Construction with a short position of Miwon Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seohee Construction and Miwon Chemicals.
Diversification Opportunities for Seohee Construction and Miwon Chemicals
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Seohee and Miwon is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Seohee Construction Co and Miwon Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemicals and Seohee Construction 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 Seohee Construction Co 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 Seohee Construction i.e., Seohee Construction and Miwon Chemicals go up and down completely randomly.
Pair Corralation between Seohee Construction and Miwon Chemicals
Assuming the 90 days trading horizon Seohee Construction is expected to generate 1.56 times less return on investment than Miwon Chemicals. In addition to that, Seohee Construction is 1.66 times more volatile than Miwon Chemicals Co. It trades about 0.03 of its total potential returns per unit of risk. Miwon Chemicals Co is currently generating about 0.09 per unit of volatility. If you would invest 7,698,726 in Miwon Chemicals Co on October 17, 2024 and sell it today you would earn a total of 141,274 from holding Miwon Chemicals Co or generate 1.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seohee Construction Co vs. Miwon Chemicals Co
Performance |
| Timeline |
| Seohee Construction |
| Miwon Chemicals |
Seohee Construction and Miwon Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seohee Construction and Miwon Chemicals
The main advantage of trading using opposite Seohee Construction and Miwon Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seohee Construction 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.| Seohee Construction vs. KCC Engineering Construction | Seohee Construction vs. Samchuly Bicycle Co | Seohee Construction vs. SFA Engineering | Seohee Construction vs. SEOHAN Const EngcoLtd |
| Miwon Chemicals vs. Seohee Construction Co | Miwon Chemicals vs. SEOJEON ELECTRIC MACHINERY | Miwon Chemicals vs. PH Tech Co | Miwon Chemicals vs. KEPCO Engineering Construction |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |