Correlation Between Miwon Chemicals and THiRA UTECH
Can any of the company-specific risk be diversified away by investing in both Miwon Chemicals and THiRA UTECH 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 THiRA UTECH 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 THiRA UTECH LTD, you can compare the effects of market volatilities on Miwon Chemicals and THiRA UTECH 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 THiRA UTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miwon Chemicals and THiRA UTECH.
Diversification Opportunities for Miwon Chemicals and THiRA UTECH
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Miwon and THiRA is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Miwon Chemicals Co and THiRA UTECH LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THiRA UTECH LTD 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 THiRA UTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THiRA UTECH LTD has no effect on the direction of Miwon Chemicals i.e., Miwon Chemicals and THiRA UTECH go up and down completely randomly.
Pair Corralation between Miwon Chemicals and THiRA UTECH
Assuming the 90 days trading horizon Miwon Chemicals Co is expected to under-perform the THiRA UTECH. But the stock apears to be less risky and, when comparing its historical volatility, Miwon Chemicals Co is 3.39 times less risky than THiRA UTECH. The stock trades about 0.0 of its potential returns per unit of risk. The THiRA UTECH LTD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 561,000 in THiRA UTECH LTD on October 24, 2024 and sell it today you would lose (7,000) from holding THiRA UTECH LTD or give up 1.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miwon Chemicals Co vs. THiRA UTECH LTD
Performance |
| Timeline |
| Miwon Chemicals |
| THiRA UTECH LTD |
Miwon Chemicals and THiRA UTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miwon Chemicals and THiRA UTECH
The main advantage of trading using opposite Miwon Chemicals and THiRA UTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miwon Chemicals position performs unexpectedly, THiRA UTECH 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 THiRA UTECH will offset losses from the drop in THiRA UTECH's long position.| Miwon Chemicals vs. Shinhan Financial Group | Miwon Chemicals vs. Dongil Metal Co | Miwon Chemicals vs. Jb Financial | Miwon Chemicals vs. Korean Reinsurance Co |
| THiRA UTECH vs. Nable Communications | THiRA UTECH vs. BGF Retail Co | THiRA UTECH vs. Hankook Furniture Co | THiRA UTECH vs. Dongil Metal 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |