Correlation Between Miwon Chemicals and Sung Bo
Can any of the company-specific risk be diversified away by investing in both Miwon Chemicals and Sung Bo 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 Sung Bo 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 Sung Bo Chemicals, you can compare the effects of market volatilities on Miwon Chemicals and Sung Bo 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 Sung Bo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miwon Chemicals and Sung Bo.
Diversification Opportunities for Miwon Chemicals and Sung Bo
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Miwon and Sung is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Miwon Chemicals Co and Sung Bo Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sung Bo Chemicals 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 Sung Bo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sung Bo Chemicals has no effect on the direction of Miwon Chemicals i.e., Miwon Chemicals and Sung Bo go up and down completely randomly.
Pair Corralation between Miwon Chemicals and Sung Bo
Assuming the 90 days trading horizon Miwon Chemicals Co is expected to generate 1.2 times more return on investment than Sung Bo. However, Miwon Chemicals is 1.2 times more volatile than Sung Bo Chemicals. It trades about 0.0 of its potential returns per unit of risk. Sung Bo Chemicals is currently generating about -0.06 per unit of risk. If you would invest 7,870,000 in Miwon Chemicals Co on December 31, 2024 and sell it today you would earn a total of 0.00 from holding Miwon Chemicals Co or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Miwon Chemicals Co vs. Sung Bo Chemicals
Performance |
Timeline |
Miwon Chemicals |
Sung Bo Chemicals |
Miwon Chemicals and Sung Bo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Miwon Chemicals and Sung Bo
The main advantage of trading using opposite Miwon Chemicals and Sung Bo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miwon Chemicals position performs unexpectedly, Sung Bo 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 Sung Bo will offset losses from the drop in Sung Bo's long position.Miwon Chemicals vs. Organic Special Pet | Miwon Chemicals vs. Daejung Chemicals Metals | Miwon Chemicals vs. Visang Education | Miwon Chemicals vs. Hyundai Green Food |
Sung Bo vs. Lotte Data Communication | Sung Bo vs. ECSTELECOM Co | Sung Bo vs. Shinhan Inverse Silver | Sung Bo vs. Mobileleader CoLtd |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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