Correlation Between Mirae Asset and Union Materials
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Union Materials 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 Union Materials 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 Union Materials Corp, you can compare the effects of market volatilities on Mirae Asset and Union Materials 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 Union Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Union Materials.
Diversification Opportunities for Mirae Asset and Union Materials
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mirae and Union is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Union Materials Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Materials Corp 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 Union Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Materials Corp has no effect on the direction of Mirae Asset i.e., Mirae Asset and Union Materials go up and down completely randomly.
Pair Corralation between Mirae Asset and Union Materials
If you would invest 218,500 in Union Materials Corp on August 30, 2024 and sell it today you would earn a total of 24,500 from holding Union Materials Corp or generate 11.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Union Materials Corp
Performance |
| Timeline |
| Mirae Asset Daewoo |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Union Materials Corp |
Mirae Asset and Union Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Union Materials
The main advantage of trading using opposite Mirae Asset and Union Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Union Materials 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 Union Materials will offset losses from the drop in Union Materials' long position.| Mirae Asset vs. RF Materials Co | Mirae Asset vs. EV Advanced Material | Mirae Asset vs. TOPMATERIAL LTD | Mirae Asset vs. PI Advanced Materials |
| Union Materials vs. ITM Semiconductor Co | Union Materials vs. SBI Investment KOREA | Union Materials vs. TS Investment Corp | Union Materials vs. LG Household Healthcare |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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