Correlation Between Miwon Chemical and Daelim Trading
Can any of the company-specific risk be diversified away by investing in both Miwon Chemical and Daelim Trading 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 Miwon Chemical and Daelim Trading into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miwon Chemical and Daelim Trading Co, you can compare the effects of market volatilities on Miwon Chemical and Daelim Trading 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 Miwon Chemical with a short position of Daelim Trading. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miwon Chemical and Daelim Trading.
Diversification Opportunities for Miwon Chemical and Daelim Trading
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Miwon and Daelim is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Miwon Chemical and Daelim Trading Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daelim Trading and Miwon Chemical 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 Miwon Chemical are associated (or correlated) with Daelim Trading. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daelim Trading has no effect on the direction of Miwon Chemical i.e., Miwon Chemical and Daelim Trading go up and down completely randomly.
Pair Corralation between Miwon Chemical and Daelim Trading
Assuming the 90 days trading horizon Miwon Chemical is expected to under-perform the Daelim Trading. But the stock apears to be less risky and, when comparing its historical volatility, Miwon Chemical is 2.19 times less risky than Daelim Trading. The stock trades about -0.16 of its potential returns per unit of risk. The Daelim Trading Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 260,500 in Daelim Trading Co on October 30, 2024 and sell it today you would lose (1,000.00) from holding Daelim Trading Co or give up 0.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miwon Chemical vs. Daelim Trading Co
Performance |
| Timeline |
| Miwon Chemical |
| Daelim Trading |
Miwon Chemical and Daelim Trading Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miwon Chemical and Daelim Trading
The main advantage of trading using opposite Miwon Chemical and Daelim Trading positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miwon Chemical position performs unexpectedly, Daelim Trading 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 Daelim Trading will offset losses from the drop in Daelim Trading's long position.| Miwon Chemical vs. Samlip General Foods | Miwon Chemical vs. Sam Yang Foods | Miwon Chemical vs. Sangsangin Investment Securities | Miwon Chemical vs. Pureun Mutual Savings |
| Daelim Trading vs. Infinitt Healthcare Co | Daelim Trading vs. Lotte Chilsung Beverage | Daelim Trading vs. INFINITT Healthcare Co | Daelim Trading vs. LG Household Healthcare |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |