Correlation Between Kumho Ind and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Kumho Ind 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 Kumho Ind and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kumho Ind and Mirae Asset Daewoo, you can compare the effects of market volatilities on Kumho Ind 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 Kumho Ind with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kumho Ind and Mirae Asset.
Diversification Opportunities for Kumho Ind and Mirae Asset
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kumho and Mirae is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kumho Ind and Mirae Asset Daewoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirae Asset Daewoo and Kumho Ind 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 Kumho Ind 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 Daewoo has no effect on the direction of Kumho Ind i.e., Kumho Ind and Mirae Asset go up and down completely randomly.
Pair Corralation between Kumho Ind and Mirae Asset
Assuming the 90 days trading horizon Kumho Ind is expected to under-perform the Mirae Asset. In addition to that, Kumho Ind is 1.04 times more volatile than Mirae Asset Daewoo. It trades about -0.07 of its total potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.04 per unit of volatility. If you would invest 624,252 in Mirae Asset Daewoo on September 4, 2024 and sell it today you would earn a total of 252,748 from holding Mirae Asset Daewoo or generate 40.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kumho Ind vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Kumho Ind |
| Mirae Asset Daewoo |
Kumho Ind and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kumho Ind and Mirae Asset
The main advantage of trading using opposite Kumho Ind and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kumho Ind 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.| Kumho Ind vs. Daekyung Machinery Engineering | Kumho Ind vs. Dongbang Ship Machinery | Kumho Ind vs. WooDeumGee Farm Co, | Kumho Ind vs. Daewoo Engineering Construction |
| Mirae Asset vs. Inzi Display CoLtd | Mirae Asset vs. Alton Sports CoLtd | Mirae Asset vs. Lotte Non Life Insurance | Mirae Asset vs. Chorokbaem Healthcare Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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