Correlation Between Mirae Asset and Dongjin Semichem
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Dongjin Semichem 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 Mirae Asset and Dongjin Semichem into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirae Asset Daewoo and Dongjin Semichem Co, you can compare the effects of market volatilities on Mirae Asset and Dongjin Semichem 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 Mirae Asset with a short position of Dongjin Semichem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Dongjin Semichem.
Diversification Opportunities for Mirae Asset and Dongjin Semichem
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirae and Dongjin is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Dongjin Semichem Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongjin Semichem and Mirae Asset 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 Mirae Asset Daewoo are associated (or correlated) with Dongjin Semichem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongjin Semichem has no effect on the direction of Mirae Asset i.e., Mirae Asset and Dongjin Semichem go up and down completely randomly.
Pair Corralation between Mirae Asset and Dongjin Semichem
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 0.72 times more return on investment than Dongjin Semichem. However, Mirae Asset Daewoo is 1.39 times less risky than Dongjin Semichem. It trades about 0.04 of its potential returns per unit of risk. Dongjin Semichem Co is currently generating about -0.02 per unit of risk. 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Dongjin Semichem Co
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Dongjin Semichem |
Mirae Asset and Dongjin Semichem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Dongjin Semichem
The main advantage of trading using opposite Mirae Asset and Dongjin Semichem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Dongjin Semichem 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 Dongjin Semichem will offset losses from the drop in Dongjin Semichem's long position.| 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 |
| Dongjin Semichem vs. LG Chemicals | Dongjin Semichem vs. POSCO Holdings | Dongjin Semichem vs. Lotte Chemical Corp | Dongjin Semichem vs. Hyundai Steel |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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