Correlation Between Sam Yang and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Sam Yang 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 Sam Yang and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sam Yang Foods and Mirae Asset Daewoo, you can compare the effects of market volatilities on Sam Yang 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 Sam Yang with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sam Yang and Mirae Asset.
Diversification Opportunities for Sam Yang and Mirae Asset
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sam and Mirae is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sam Yang Foods 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 Sam Yang 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 Sam Yang Foods 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 Sam Yang i.e., Sam Yang and Mirae Asset go up and down completely randomly.
Pair Corralation between Sam Yang and Mirae Asset
Assuming the 90 days trading horizon Sam Yang Foods is expected to under-perform the Mirae Asset. But the stock apears to be less risky and, when comparing its historical volatility, Sam Yang Foods is 2.84 times less risky than Mirae Asset. The stock trades about -0.11 of its potential returns per unit of risk. The Mirae Asset Daewoo is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 425,500 in Mirae Asset Daewoo on September 4, 2024 and sell it today you would earn a total of 26,500 from holding Mirae Asset Daewoo or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sam Yang Foods vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Sam Yang Foods |
| Mirae Asset Daewoo |
Sam Yang and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sam Yang and Mirae Asset
The main advantage of trading using opposite Sam Yang and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sam Yang 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.| Sam Yang vs. LG Display | Sam Yang vs. Hyundai Motor | Sam Yang vs. Hyundai Motor Co | Sam Yang vs. Hyundai Motor Co |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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