Correlation Between Miwon Chemicals and Haesung DS
Can any of the company-specific risk be diversified away by investing in both Miwon Chemicals and Haesung DS 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 Haesung DS 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 Haesung DS Co, you can compare the effects of market volatilities on Miwon Chemicals and Haesung DS 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 Haesung DS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miwon Chemicals and Haesung DS.
Diversification Opportunities for Miwon Chemicals and Haesung DS
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Miwon and Haesung is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Miwon Chemicals Co and Haesung DS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haesung DS 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 Haesung DS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haesung DS has no effect on the direction of Miwon Chemicals i.e., Miwon Chemicals and Haesung DS go up and down completely randomly.
Pair Corralation between Miwon Chemicals and Haesung DS
Assuming the 90 days trading horizon Miwon Chemicals Co is expected to generate 0.31 times more return on investment than Haesung DS. However, Miwon Chemicals Co is 3.19 times less risky than Haesung DS. It trades about 0.09 of its potential returns per unit of risk. Haesung DS Co is currently generating about -0.04 per unit of risk. If you would invest 6,156,866 in Miwon Chemicals Co on October 25, 2024 and sell it today you would earn a total of 1,593,134 from holding Miwon Chemicals Co or generate 25.88% 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. Haesung DS Co
Performance |
| Timeline |
| Miwon Chemicals |
| Haesung DS |
Miwon Chemicals and Haesung DS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miwon Chemicals and Haesung DS
The main advantage of trading using opposite Miwon Chemicals and Haesung DS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miwon Chemicals position performs unexpectedly, Haesung DS 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 Haesung DS will offset losses from the drop in Haesung DS's long position.| Miwon Chemicals vs. KB Financial Group | Miwon Chemicals vs. Shinhan Financial Group | Miwon Chemicals vs. Hana Financial | Miwon Chemicals vs. Woori Financial Group |
| Haesung DS vs. Genie Music | Haesung DS vs. Miwon Chemicals Co | Haesung DS vs. Alton Sports CoLtd | Haesung DS vs. Sempio Foods Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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