Correlation Between Kia Corp and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Kia Corp and Mirae Asset 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 Kia Corp and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kia Corp and Mirae Asset No2, you can compare the effects of market volatilities on Kia Corp and Mirae Asset 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 Kia Corp with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kia Corp and Mirae Asset.
Diversification Opportunities for Kia Corp and Mirae Asset
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kia and Mirae is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Kia Corp and Mirae Asset No2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirae Asset No2 and Kia Corp 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 Kia Corp are associated (or correlated) with Mirae Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirae Asset No2 has no effect on the direction of Kia Corp i.e., Kia Corp and Mirae Asset go up and down completely randomly.
Pair Corralation between Kia Corp and Mirae Asset
Assuming the 90 days trading horizon Kia Corp is expected to generate 0.76 times more return on investment than Mirae Asset. However, Kia Corp is 1.32 times less risky than Mirae Asset. It trades about 0.1 of its potential returns per unit of risk. Mirae Asset No2 is currently generating about -0.16 per unit of risk. If you would invest 9,300,000 in Kia Corp on August 24, 2024 and sell it today you would earn a total of 460,000 from holding Kia Corp or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kia Corp vs. Mirae Asset No2
Performance |
| Timeline |
| Kia Corp |
| Mirae Asset No2 |
Kia Corp and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kia Corp and Mirae Asset
The main advantage of trading using opposite Kia Corp and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kia Corp position performs unexpectedly, Mirae Asset 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 Mirae Asset will offset losses from the drop in Mirae Asset's long position.| Kia Corp vs. Busan Industrial Co | Kia Corp vs. Busan Ind | Kia Corp vs. Mirae Asset Daewoo | Kia Corp vs. UNISEM Co |
| Mirae Asset vs. AptaBio Therapeutics | Mirae Asset vs. Daewoo SBI SPAC | Mirae Asset vs. Dream Security co | Mirae Asset vs. Microfriend |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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