Correlation Between Mirae Asset and Nature
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Nature 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 Nature 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 Nature and Environment, you can compare the effects of market volatilities on Mirae Asset and Nature 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 Nature. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Nature.
Diversification Opportunities for Mirae Asset and Nature
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mirae and Nature is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Nature and Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nature and Environment 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 Nature. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nature and Environment has no effect on the direction of Mirae Asset i.e., Mirae Asset and Nature go up and down completely randomly.
Pair Corralation between Mirae Asset and Nature
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 2.61 times more return on investment than Nature. However, Mirae Asset is 2.61 times more volatile than Nature and Environment. It trades about 0.06 of its potential returns per unit of risk. Nature and Environment is currently generating about 0.07 per unit of risk. If you would invest 425,500 in Mirae Asset Daewoo on September 3, 2024 and sell it today you would earn a total of 22,500 from holding Mirae Asset Daewoo or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Nature and Environment
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Nature and Environment |
Mirae Asset and Nature Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Nature
The main advantage of trading using opposite Mirae Asset and Nature positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Nature 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 Nature will offset losses from the drop in Nature's long position.| Mirae Asset vs. Samlip General Foods | Mirae Asset vs. Pureun Mutual Savings | Mirae Asset vs. Sam Yang Foods | Mirae Asset vs. Samsung Life Insurance |
| Nature vs. Sung Bo Chemicals | Nature vs. LB Investment | Nature vs. Seoul Food Industrial | Nature vs. Haitai Confectionery Foods |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |