Correlation Between E Investment and Miwon Chemical
Can any of the company-specific risk be diversified away by investing in both E Investment 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 E Investment and Miwon Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Investment Development and Miwon Chemical, you can compare the effects of market volatilities on E Investment 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 E Investment with a short position of Miwon Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Miwon Chemical.
Diversification Opportunities for E Investment and Miwon Chemical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Miwon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and Miwon Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemical and E Investment 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 E Investment Development 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 E Investment i.e., E Investment and Miwon Chemical go up and down completely randomly.
Pair Corralation between E Investment and Miwon Chemical
Assuming the 90 days trading horizon E Investment Development is expected to generate 3.87 times more return on investment than Miwon Chemical. However, E Investment is 3.87 times more volatile than Miwon Chemical. It trades about 0.04 of its potential returns per unit of risk. Miwon Chemical is currently generating about 0.06 per unit of risk. If you would invest 92,900 in E Investment Development on October 30, 2024 and sell it today you would earn a total of 46,300 from holding E Investment Development or generate 49.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Investment Development vs. Miwon Chemical
Performance |
| Timeline |
| E Investment Development |
| Miwon Chemical |
E Investment and Miwon Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Miwon Chemical
The main advantage of trading using opposite E Investment and Miwon Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment 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.| E Investment vs. Dongil Metal Co | E Investment vs. Kg Chemical | E Investment vs. DRB Industrial Co | E Investment vs. ISU Chemical Co |
| Miwon Chemical vs. Samlip General Foods | Miwon Chemical vs. Sam Yang Foods | Miwon Chemical vs. Sangsangin Investment Securities | Miwon Chemical vs. Pureun Mutual Savings |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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