Correlation Between Mirae Asset and INFINITT Healthcare
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and INFINITT Healthcare 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 INFINITT Healthcare 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 INFINITT Healthcare Co, you can compare the effects of market volatilities on Mirae Asset and INFINITT Healthcare 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 INFINITT Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and INFINITT Healthcare.
Diversification Opportunities for Mirae Asset and INFINITT Healthcare
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mirae and INFINITT is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and INFINITT Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFINITT Healthcare 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 INFINITT Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFINITT Healthcare has no effect on the direction of Mirae Asset i.e., Mirae Asset and INFINITT Healthcare go up and down completely randomly.
Pair Corralation between Mirae Asset and INFINITT Healthcare
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 0.91 times more return on investment than INFINITT Healthcare. However, Mirae Asset Daewoo is 1.1 times less risky than INFINITT Healthcare. It trades about 0.03 of its potential returns per unit of risk. INFINITT Healthcare Co is currently generating about -0.01 per unit of risk. If you would invest 397,275 in Mirae Asset Daewoo on August 31, 2024 and sell it today you would earn a total of 50,725 from holding Mirae Asset Daewoo or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. INFINITT Healthcare Co
Performance |
| Timeline |
| Mirae Asset Daewoo |
| INFINITT Healthcare |
Mirae Asset and INFINITT Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and INFINITT Healthcare
The main advantage of trading using opposite Mirae Asset and INFINITT Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, INFINITT Healthcare 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 INFINITT Healthcare will offset losses from the drop in INFINITT Healthcare's 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 |
| INFINITT Healthcare vs. AptaBio Therapeutics | INFINITT Healthcare vs. KT Hitel | INFINITT Healthcare vs. SillaJen | INFINITT Healthcare 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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