Correlation Between Mirae Asset and Cherrybro CoLtd
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Cherrybro CoLtd 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 Cherrybro CoLtd 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 Cherrybro coLtd, you can compare the effects of market volatilities on Mirae Asset and Cherrybro CoLtd 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 Cherrybro CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Cherrybro CoLtd.
Diversification Opportunities for Mirae Asset and Cherrybro CoLtd
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirae and Cherrybro is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Cherrybro coLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cherrybro 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 Cherrybro CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cherrybro coLtd has no effect on the direction of Mirae Asset i.e., Mirae Asset and Cherrybro CoLtd go up and down completely randomly.
Pair Corralation between Mirae Asset and Cherrybro CoLtd
Assuming the 90 days trading horizon Mirae Asset is expected to generate 1.11 times less return on investment than Cherrybro CoLtd. In addition to that, Mirae Asset is 2.2 times more volatile than Cherrybro coLtd. It trades about 0.06 of its total potential returns per unit of risk. Cherrybro coLtd is currently generating about 0.15 per unit of volatility. If you would invest 71,500 in Cherrybro coLtd on September 1, 2024 and sell it today you would earn a total of 7,100 from holding Cherrybro coLtd or generate 9.93% 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. Cherrybro coLtd
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Cherrybro coLtd |
Mirae Asset and Cherrybro CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Cherrybro CoLtd
The main advantage of trading using opposite Mirae Asset and Cherrybro CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Cherrybro CoLtd 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 Cherrybro CoLtd will offset losses from the drop in Cherrybro CoLtd'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 |
| Cherrybro CoLtd vs. Busan Industrial Co | Cherrybro CoLtd vs. Busan Ind | Cherrybro CoLtd vs. Mirae Asset Daewoo | Cherrybro CoLtd vs. Finebesteel |
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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