Correlation Between INFINITT Healthcare and Miwon Chemical
Can any of the company-specific risk be diversified away by investing in both INFINITT Healthcare 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 INFINITT Healthcare and Miwon Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INFINITT Healthcare Co and Miwon Chemical, you can compare the effects of market volatilities on INFINITT Healthcare 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 INFINITT Healthcare with a short position of Miwon Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of INFINITT Healthcare and Miwon Chemical.
Diversification Opportunities for INFINITT Healthcare and Miwon Chemical
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between INFINITT and Miwon is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding INFINITT Healthcare Co and Miwon Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemical and INFINITT Healthcare 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 INFINITT Healthcare 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 INFINITT Healthcare i.e., INFINITT Healthcare and Miwon Chemical go up and down completely randomly.
Pair Corralation between INFINITT Healthcare and Miwon Chemical
Assuming the 90 days trading horizon INFINITT Healthcare Co is expected to generate 0.89 times more return on investment than Miwon Chemical. However, INFINITT Healthcare Co is 1.13 times less risky than Miwon Chemical. It trades about 0.14 of its potential returns per unit of risk. Miwon Chemical is currently generating about -0.13 per unit of risk. If you would invest 420,000 in INFINITT Healthcare Co on October 25, 2024 and sell it today you would earn a total of 9,500 from holding INFINITT Healthcare Co or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INFINITT Healthcare Co vs. Miwon Chemical
Performance |
| Timeline |
| INFINITT Healthcare |
| Miwon Chemical |
INFINITT Healthcare and Miwon Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INFINITT Healthcare and Miwon Chemical
The main advantage of trading using opposite INFINITT Healthcare and Miwon Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INFINITT Healthcare 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.| INFINITT Healthcare vs. Dongwoo Farm To | INFINITT Healthcare vs. Woori Financial Group | INFINITT Healthcare vs. KakaoBank Corp | INFINITT Healthcare vs. InfoBank |
| Miwon Chemical vs. FOODWELL Co | Miwon Chemical vs. INFINITT Healthcare Co | Miwon Chemical vs. LG Household Healthcare | Miwon Chemical vs. Sajo Seafood |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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