Correlation Between Mirai Semiconductors and Korea Petro
Can any of the company-specific risk be diversified away by investing in both Mirai Semiconductors and Korea Petro 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 Mirai Semiconductors and Korea Petro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirai Semiconductors Co and Korea Petro Chemical, you can compare the effects of market volatilities on Mirai Semiconductors and Korea Petro 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 Mirai Semiconductors with a short position of Korea Petro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirai Semiconductors and Korea Petro.
Diversification Opportunities for Mirai Semiconductors and Korea Petro
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mirai and Korea is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Mirai Semiconductors Co and Korea Petro Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Petro Chemical and Mirai Semiconductors 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 Mirai Semiconductors Co are associated (or correlated) with Korea Petro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Petro Chemical has no effect on the direction of Mirai Semiconductors i.e., Mirai Semiconductors and Korea Petro go up and down completely randomly.
Pair Corralation between Mirai Semiconductors and Korea Petro
Assuming the 90 days trading horizon Mirai Semiconductors Co is expected to generate 0.94 times more return on investment than Korea Petro. However, Mirai Semiconductors Co is 1.06 times less risky than Korea Petro. It trades about -0.03 of its potential returns per unit of risk. Korea Petro Chemical is currently generating about -0.03 per unit of risk. If you would invest 1,261,000 in Mirai Semiconductors Co on October 22, 2024 and sell it today you would lose (80,000) from holding Mirai Semiconductors Co or give up 6.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirai Semiconductors Co vs. Korea Petro Chemical
Performance |
| Timeline |
| Mirai Semiconductors |
| Korea Petro Chemical |
Mirai Semiconductors and Korea Petro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirai Semiconductors and Korea Petro
The main advantage of trading using opposite Mirai Semiconductors and Korea Petro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirai Semiconductors position performs unexpectedly, Korea Petro 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 Korea Petro will offset losses from the drop in Korea Petro's long position.| Mirai Semiconductors vs. Korea Information Engineering | Mirai Semiconductors vs. Global Standard Technology | Mirai Semiconductors vs. HB Technology TD | Mirai Semiconductors vs. Daou Technology |
| Korea Petro vs. Leaders Technology Investment | Korea Petro vs. Coloray International Investment | Korea Petro vs. InnoTherapy | Korea Petro vs. Daol Investment Securities |
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 CEOs Directory module to screen CEOs from public companies around the world.
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