Correlation Between Miwon Chemical and Daewoo SBI
Can any of the company-specific risk be diversified away by investing in both Miwon Chemical and Daewoo SBI 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 Daewoo SBI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miwon Chemical and Daewoo SBI SPAC, you can compare the effects of market volatilities on Miwon Chemical and Daewoo SBI 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 Daewoo SBI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miwon Chemical and Daewoo SBI.
Diversification Opportunities for Miwon Chemical and Daewoo SBI
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Miwon and Daewoo is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Miwon Chemical and Daewoo SBI SPAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daewoo SBI SPAC 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 Daewoo SBI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daewoo SBI SPAC has no effect on the direction of Miwon Chemical i.e., Miwon Chemical and Daewoo SBI go up and down completely randomly.
Pair Corralation between Miwon Chemical and Daewoo SBI
Assuming the 90 days trading horizon Miwon Chemical is expected to generate 0.49 times more return on investment than Daewoo SBI. However, Miwon Chemical is 2.04 times less risky than Daewoo SBI. It trades about 0.05 of its potential returns per unit of risk. Daewoo SBI SPAC is currently generating about -0.03 per unit of risk. If you would invest 6,292,328 in Miwon Chemical on September 23, 2024 and sell it today you would earn a total of 1,707,672 from holding Miwon Chemical or generate 27.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miwon Chemical vs. Daewoo SBI SPAC
Performance |
| Timeline |
| Miwon Chemical |
| Daewoo SBI SPAC |
Miwon Chemical and Daewoo SBI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miwon Chemical and Daewoo SBI
The main advantage of trading using opposite Miwon Chemical and Daewoo SBI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miwon Chemical position performs unexpectedly, Daewoo SBI 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 Daewoo SBI will offset losses from the drop in Daewoo SBI's long position.| Miwon Chemical vs. Jeju Semiconductor Corp | Miwon Chemical vs. Hwangkum Steel Technology | Miwon Chemical vs. Daou Technology | Miwon Chemical vs. Digital Imaging Technology |
| Daewoo SBI vs. Foodnamoo | Daewoo SBI vs. Shinsegae Food | Daewoo SBI vs. Haitai Confectionery Foods | Daewoo SBI vs. KakaoBank Corp |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |