Correlation Between PH Tech and Miwon Chemical
Can any of the company-specific risk be diversified away by investing in both PH Tech and Miwon Chemical 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 PH Tech and Miwon Chemical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and Miwon Chemical, you can compare the effects of market volatilities on PH Tech and Miwon Chemical 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 PH Tech with a short position of Miwon Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and Miwon Chemical.
Diversification Opportunities for PH Tech and Miwon Chemical
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 239890 and Miwon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and Miwon Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemical and PH Tech 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 PH Tech Co are associated (or correlated) with Miwon Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miwon Chemical has no effect on the direction of PH Tech i.e., PH Tech and Miwon Chemical go up and down completely randomly.
Pair Corralation between PH Tech and Miwon Chemical
Assuming the 90 days trading horizon PH Tech Co is expected to generate 4.99 times more return on investment than Miwon Chemical. However, PH Tech is 4.99 times more volatile than Miwon Chemical. It trades about 0.18 of its potential returns per unit of risk. Miwon Chemical is currently generating about -0.06 per unit of risk. If you would invest 697,000 in PH Tech Co on August 30, 2024 and sell it today you would earn a total of 118,000 from holding PH Tech Co or generate 16.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. Miwon Chemical
Performance |
| Timeline |
| PH Tech |
| Miwon Chemical |
PH Tech and Miwon Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and Miwon Chemical
The main advantage of trading using opposite PH Tech and Miwon Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech position performs unexpectedly, Miwon Chemical 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 Miwon Chemical will offset losses from the drop in Miwon Chemical's long position.| PH Tech vs. Taeyang Metal Industrial | PH Tech vs. National Plastic Co | PH Tech vs. Samick Musical Instruments | PH Tech vs. Kukil Metal Co |
| Miwon Chemical vs. FNSTech Co | Miwon Chemical vs. LG Household Healthcare | Miwon Chemical vs. Cots Technology Co | Miwon Chemical vs. PH Tech 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |