Correlation Between Duksan Hi and Miwon Chemicals
Can any of the company-specific risk be diversified away by investing in both Duksan Hi 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 Duksan Hi and Miwon Chemicals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duksan Hi Metal and Miwon Chemicals Co, you can compare the effects of market volatilities on Duksan Hi 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 Duksan Hi with a short position of Miwon Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duksan Hi and Miwon Chemicals.
Diversification Opportunities for Duksan Hi and Miwon Chemicals
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Duksan and Miwon is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Duksan Hi Metal and Miwon Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemicals and Duksan Hi 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 Duksan Hi Metal 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 Duksan Hi i.e., Duksan Hi and Miwon Chemicals go up and down completely randomly.
Pair Corralation between Duksan Hi and Miwon Chemicals
Assuming the 90 days trading horizon Duksan Hi Metal is expected to under-perform the Miwon Chemicals. In addition to that, Duksan Hi is 4.41 times more volatile than Miwon Chemicals Co. It trades about -0.36 of its total potential returns per unit of risk. Miwon Chemicals Co is currently generating about -0.13 per unit of volatility. If you would invest 7,990,000 in Miwon Chemicals Co on August 24, 2024 and sell it today you would lose (150,000) from holding Miwon Chemicals Co or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duksan Hi Metal vs. Miwon Chemicals Co
Performance |
| Timeline |
| Duksan Hi Metal |
| Miwon Chemicals |
Duksan Hi and Miwon Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duksan Hi and Miwon Chemicals
The main advantage of trading using opposite Duksan Hi and Miwon Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duksan Hi 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.| Duksan Hi vs. Korea Real Estate | Duksan Hi vs. Korea Ratings Co | Duksan Hi vs. IQuest Co | Duksan Hi vs. Wonbang Tech Co |
| Miwon Chemicals vs. AptaBio Therapeutics | Miwon Chemicals vs. Daewoo SBI SPAC | Miwon Chemicals vs. Dream Security co | Miwon Chemicals vs. Microfriend |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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