Correlation Between Mirae Asset and INtRON Biotechnology
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and INtRON Biotechnology 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 INtRON Biotechnology 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 iNtRON Biotechnology, you can compare the effects of market volatilities on Mirae Asset and INtRON Biotechnology 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 INtRON Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and INtRON Biotechnology.
Diversification Opportunities for Mirae Asset and INtRON Biotechnology
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mirae and INtRON is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and iNtRON Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iNtRON Biotechnology 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 INtRON Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iNtRON Biotechnology has no effect on the direction of Mirae Asset i.e., Mirae Asset and INtRON Biotechnology go up and down completely randomly.
Pair Corralation between Mirae Asset and INtRON Biotechnology
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 3.31 times more return on investment than INtRON Biotechnology. However, Mirae Asset is 3.31 times more volatile than iNtRON Biotechnology. It trades about 0.06 of its potential returns per unit of risk. iNtRON Biotechnology is currently generating about -0.16 per unit of risk. If you would invest 425,500 in Mirae Asset Daewoo on September 1, 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. iNtRON Biotechnology
Performance |
| Timeline |
| Mirae Asset Daewoo |
| iNtRON Biotechnology |
Mirae Asset and INtRON Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and INtRON Biotechnology
The main advantage of trading using opposite Mirae Asset and INtRON Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, INtRON Biotechnology 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 INtRON Biotechnology will offset losses from the drop in INtRON Biotechnology's long position.| Mirae Asset vs. Daol Investment Securities | Mirae Asset vs. Dongbang Transport Logistics | Mirae Asset vs. Shinsegae Engineering Construction | Mirae Asset vs. KEPCO Engineering Construction |
| INtRON Biotechnology vs. AptaBio Therapeutics | INtRON Biotechnology vs. KT Hitel | INtRON Biotechnology vs. SillaJen | INtRON Biotechnology vs. Cytogen |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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