Correlation Between KT Submarine and Miwon Chemical
Can any of the company-specific risk be diversified away by investing in both KT Submarine 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 KT Submarine and Miwon Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KT Submarine Telecom and Miwon Chemical, you can compare the effects of market volatilities on KT Submarine 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 KT Submarine with a short position of Miwon Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Submarine and Miwon Chemical.
Diversification Opportunities for KT Submarine and Miwon Chemical
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 060370 and Miwon is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding KT Submarine Telecom and Miwon Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemical and KT Submarine 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 KT Submarine Telecom 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 KT Submarine i.e., KT Submarine and Miwon Chemical go up and down completely randomly.
Pair Corralation between KT Submarine and Miwon Chemical
Assuming the 90 days trading horizon KT Submarine Telecom is expected to generate 4.28 times more return on investment than Miwon Chemical. However, KT Submarine is 4.28 times more volatile than Miwon Chemical. It trades about 0.03 of its potential returns per unit of risk. Miwon Chemical is currently generating about 0.1 per unit of risk. If you would invest 1,033,000 in KT Submarine Telecom on August 25, 2024 and sell it today you would earn a total of 140,000 from holding KT Submarine Telecom or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.69% |
| Values | Daily Returns |
KT Submarine Telecom vs. Miwon Chemical
Performance |
| Timeline |
| KT Submarine Telecom |
| Miwon Chemical |
KT Submarine and Miwon Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KT Submarine and Miwon Chemical
The main advantage of trading using opposite KT Submarine and Miwon Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT Submarine 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.| KT Submarine vs. Korean Reinsurance Co | KT Submarine vs. Shinsegae Engineering Construction | KT Submarine vs. Koryo Credit Information | KT Submarine vs. Tuksu Engineering ConstructionLtd |
| Miwon Chemical vs. SBI Investment KOREA | Miwon Chemical vs. Golden Bridge Investment | Miwon Chemical vs. SK Telecom Co | Miwon Chemical vs. KT Submarine Telecom |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |