Correlation Between Miwon Chemicals and KIWI Media
Can any of the company-specific risk be diversified away by investing in both Miwon Chemicals and KIWI Media 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 Chemicals and KIWI Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miwon Chemicals Co and KIWI Media Group, you can compare the effects of market volatilities on Miwon Chemicals and KIWI Media 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 Chemicals with a short position of KIWI Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miwon Chemicals and KIWI Media.
Diversification Opportunities for Miwon Chemicals and KIWI Media
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Miwon and KIWI is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Miwon Chemicals Co and KIWI Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIWI Media Group and Miwon Chemicals 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 Chemicals Co are associated (or correlated) with KIWI Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIWI Media Group has no effect on the direction of Miwon Chemicals i.e., Miwon Chemicals and KIWI Media go up and down completely randomly.
Pair Corralation between Miwon Chemicals and KIWI Media
Assuming the 90 days trading horizon Miwon Chemicals Co is expected to generate 0.18 times more return on investment than KIWI Media. However, Miwon Chemicals Co is 5.51 times less risky than KIWI Media. It trades about 0.05 of its potential returns per unit of risk. KIWI Media Group is currently generating about 0.0 per unit of risk. If you would invest 6,213,119 in Miwon Chemicals Co on August 29, 2024 and sell it today you would earn a total of 1,566,881 from holding Miwon Chemicals Co or generate 25.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miwon Chemicals Co vs. KIWI Media Group
Performance |
| Timeline |
| Miwon Chemicals |
| KIWI Media Group |
Miwon Chemicals and KIWI Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miwon Chemicals and KIWI Media
The main advantage of trading using opposite Miwon Chemicals and KIWI Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miwon Chemicals position performs unexpectedly, KIWI Media 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 KIWI Media will offset losses from the drop in KIWI Media's long position.| Miwon Chemicals vs. INNOX Advanced Materials | Miwon Chemicals vs. RF Materials Co | Miwon Chemicals vs. Hana Materials | Miwon Chemicals vs. Daejoo Electronic Materials |
| KIWI Media vs. Samsung Electronics Co | KIWI Media vs. Samsung Electronics Co | KIWI Media vs. LG Energy Solution | KIWI Media vs. SK Hynix |
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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