Correlation Between Kosdaq Composite and Miwon Chemicals
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By analyzing existing cross correlation between Kosdaq Composite Index and Miwon Chemicals Co, you can compare the effects of market volatilities on Kosdaq Composite and Miwon Chemicals 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 Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Miwon Chemicals.
Diversification Opportunities for Kosdaq Composite and Miwon Chemicals
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kosdaq and Miwon is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index and Miwon Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Miwon Chemicals 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 Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Miwon Chemicals has no effect on the direction of Kosdaq Composite i.e., Kosdaq Composite and Miwon Chemicals go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Miwon Chemicals
Assuming the 90 days trading horizon Kosdaq Composite Index is expected to under-perform the Miwon Chemicals. In addition to that, Kosdaq Composite is 1.48 times more volatile than Miwon Chemicals Co. It trades about -0.04 of its total potential returns per unit of risk. Miwon Chemicals Co is currently generating about 0.07 per unit of volatility. If you would invest 6,101,045 in Miwon Chemicals Co on August 28, 2024 and sell it today you would earn a total of 1,568,955 from holding Miwon Chemicals Co or generate 25.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Miwon Chemicals Co
Performance |
| Timeline |
Kosdaq Composite and Miwon Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Miwon Chemicals Co
Pair trading matchups for Miwon Chemicals
Pair Trading with Kosdaq Composite and Miwon Chemicals
The main advantage of trading using opposite Kosdaq Composite and Miwon Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite position performs unexpectedly, Miwon Chemicals 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 Chemicals will offset losses from the drop in Miwon Chemicals' long position.| Kosdaq Composite vs. Shinil Electronics Co | Kosdaq Composite vs. Sungdo Engineering Construction | Kosdaq Composite vs. Seoul Electronics Telecom | Kosdaq Composite vs. ENERGYMACHINERY KOREA CoLtd |
| Miwon Chemicals vs. INNOX Advanced Materials | Miwon Chemicals vs. RF Materials Co | Miwon Chemicals vs. Hana Materials | Miwon Chemicals vs. Daejoo Electronic Materials |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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