Correlation Between Mirae Asset and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Mirae Asset and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Inzi Display.
Diversification Opportunities for Mirae Asset and Inzi Display
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mirae and Inzi is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Mirae Asset i.e., Mirae Asset and Inzi Display go up and down completely randomly.
Pair Corralation between Mirae Asset and Inzi Display
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 2.0 times more return on investment than Inzi Display. However, Mirae Asset is 2.0 times more volatile than Inzi Display CoLtd. It trades about 0.03 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.26 per unit of risk. If you would invest 855,000 in Mirae Asset Daewoo on September 12, 2024 and sell it today you would earn a total of 9,000 from holding Mirae Asset Daewoo or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Inzi Display CoLtd
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Inzi Display CoLtd |
Mirae Asset and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Inzi Display
The main advantage of trading using opposite Mirae Asset and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Mirae Asset vs. SKONEC Entertainment Co | Mirae Asset vs. FNC Entertainment Co | Mirae Asset vs. MEDIANA CoLtd | Mirae Asset vs. Cots Technology Co |
| Inzi Display vs. Cube Entertainment | Inzi Display vs. Dreamus Company | Inzi Display vs. LG Energy Solution | Inzi Display vs. Dongwon System |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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