Correlation Between Samsung Electronics and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics 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 Samsung Electronics and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on Samsung Electronics 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 Samsung Electronics with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Mirae Asset.
Diversification Opportunities for Samsung Electronics and Mirae Asset
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samsung and Mirae is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co 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 Samsung Electronics 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 Samsung Electronics Co 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 Samsung Electronics i.e., Samsung Electronics and Mirae Asset go up and down completely randomly.
Pair Corralation between Samsung Electronics and Mirae Asset
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Mirae Asset. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.09 times less risky than Mirae Asset. The stock trades about -0.1 of its potential returns per unit of risk. The Mirae Asset Daewoo is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 710,000 in Mirae Asset Daewoo on September 3, 2024 and sell it today you would earn a total of 146,000 from holding Mirae Asset Daewoo or generate 20.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Samsung Electronics |
| Mirae Asset Daewoo |
Samsung Electronics and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Mirae Asset
The main advantage of trading using opposite Samsung Electronics and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics 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.| Samsung Electronics vs. Busan Industrial Co | Samsung Electronics vs. UNISEM Co | Samsung Electronics vs. RPBio Inc | Samsung Electronics vs. Finebesteel |
| Mirae Asset vs. Dongjin Semichem Co | Mirae Asset vs. AhnLab Inc | Mirae Asset vs. Posco ICT | Mirae Asset vs. CJ ENM |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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