Correlation Between Kosdaq Composite and Miwon Chemical
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By analyzing existing cross correlation between Kosdaq Composite Index and Miwon Chemical, you can compare the effects of market volatilities on Kosdaq Composite 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 Kosdaq Composite with a short position of Miwon Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Miwon Chemical.
Diversification Opportunities for Kosdaq Composite and Miwon Chemical
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kosdaq and Miwon is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Miwon Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemical and Kosdaq Composite 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 Kosdaq Composite Index 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 Kosdaq Composite i.e., Kosdaq Composite and Miwon Chemical go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Miwon Chemical
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to generate 1.42 times more return on investment than Miwon Chemical. However, Kosdaq Composite is 1.42 times more volatile than Miwon Chemical. It trades about 0.11 of its potential returns per unit of risk. Miwon Chemical is currently generating about -0.22 per unit of risk. If you would invest 72,352 in Kosdaq Composite Index on November 10, 2024 and sell it today you would earn a total of 1,938 from holding Kosdaq Composite Index or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Miwon Chemical
Performance |
| Timeline |
Kosdaq Composite and Miwon Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Miwon Chemical
Pair trading matchups for Miwon Chemical
Pair Trading with Kosdaq Composite and Miwon Chemical
The main advantage of trading using opposite Kosdaq Composite and Miwon Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite 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.| Kosdaq Composite vs. Histeel | Kosdaq Composite vs. BooKook Steel Co | Kosdaq Composite vs. Insun Environment New | Kosdaq Composite vs. Daejung Chemicals Metals |
| Miwon Chemical vs. Korea Steel Co | Miwon Chemical vs. Samji Electronics Co | Miwon Chemical vs. Daehan Steel | Miwon Chemical vs. Husteel |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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