Correlation Between Miwon Chemical and PLAYWITH
Can any of the company-specific risk be diversified away by investing in both Miwon Chemical and PLAYWITH 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 PLAYWITH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miwon Chemical and PLAYWITH, you can compare the effects of market volatilities on Miwon Chemical and PLAYWITH 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 PLAYWITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miwon Chemical and PLAYWITH.
Diversification Opportunities for Miwon Chemical and PLAYWITH
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Miwon and PLAYWITH is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Miwon Chemical and PLAYWITH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWITH 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 PLAYWITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWITH has no effect on the direction of Miwon Chemical i.e., Miwon Chemical and PLAYWITH go up and down completely randomly.
Pair Corralation between Miwon Chemical and PLAYWITH
Assuming the 90 days trading horizon Miwon Chemical is expected to generate 0.41 times more return on investment than PLAYWITH. However, Miwon Chemical is 2.43 times less risky than PLAYWITH. It trades about -0.07 of its potential returns per unit of risk. PLAYWITH is currently generating about -0.05 per unit of risk. If you would invest 7,870,000 in Miwon Chemical on November 3, 2024 and sell it today you would lose (70,000) from holding Miwon Chemical or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miwon Chemical vs. PLAYWITH
Performance |
| Timeline |
| Miwon Chemical |
| PLAYWITH |
Miwon Chemical and PLAYWITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miwon Chemical and PLAYWITH
The main advantage of trading using opposite Miwon Chemical and PLAYWITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miwon Chemical position performs unexpectedly, PLAYWITH 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 PLAYWITH will offset losses from the drop in PLAYWITH's long position.| Miwon Chemical vs. Youngchang Chemical Co | Miwon Chemical vs. Hanwha Chemical Corp | Miwon Chemical vs. Kukdong Oil Chemicals | Miwon Chemical vs. Narae Nanotech Corp |
| PLAYWITH vs. Dongnam Chemical Co | PLAYWITH vs. V One Tech Co | PLAYWITH vs. Raontech | PLAYWITH vs. Puloon Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |