Correlation Between Miwon Chemical and Tae Kyung
Can any of the company-specific risk be diversified away by investing in both Miwon Chemical and Tae Kyung 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 Tae Kyung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miwon Chemical and Tae Kyung Chemical, you can compare the effects of market volatilities on Miwon Chemical and Tae Kyung 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 Tae Kyung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miwon Chemical and Tae Kyung.
Diversification Opportunities for Miwon Chemical and Tae Kyung
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Miwon and Tae is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Miwon Chemical and Tae Kyung Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tae Kyung Chemical 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 Tae Kyung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tae Kyung Chemical has no effect on the direction of Miwon Chemical i.e., Miwon Chemical and Tae Kyung go up and down completely randomly.
Pair Corralation between Miwon Chemical and Tae Kyung
Assuming the 90 days trading horizon Miwon Chemical is expected to under-perform the Tae Kyung. But the stock apears to be less risky and, when comparing its historical volatility, Miwon Chemical is 1.89 times less risky than Tae Kyung. The stock trades about -0.23 of its potential returns per unit of risk. The Tae Kyung Chemical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,089,000 in Tae Kyung Chemical on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Tae Kyung Chemical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miwon Chemical vs. Tae Kyung Chemical
Performance |
| Timeline |
| Miwon Chemical |
| Tae Kyung Chemical |
Miwon Chemical and Tae Kyung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miwon Chemical and Tae Kyung
The main advantage of trading using opposite Miwon Chemical and Tae Kyung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miwon Chemical position performs unexpectedly, Tae Kyung 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 Tae Kyung will offset losses from the drop in Tae Kyung's long position.| Miwon Chemical vs. LG Chem | Miwon Chemical vs. Chunbo Co | Miwon Chemical vs. Hyosung Chemical Corp | Miwon Chemical vs. LIG ES SPAC |
| Tae Kyung vs. AptaBio Therapeutics | Tae Kyung vs. Daewoo SBI SPAC | Tae Kyung vs. Dream Security co | Tae Kyung 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |