Correlation Between Mirae Asset and Wooyang
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Wooyang 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 Wooyang 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 Wooyang Co, you can compare the effects of market volatilities on Mirae Asset and Wooyang 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 Wooyang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Wooyang.
Diversification Opportunities for Mirae Asset and Wooyang
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mirae and Wooyang is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Wooyang Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wooyang 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 Wooyang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wooyang has no effect on the direction of Mirae Asset i.e., Mirae Asset and Wooyang go up and down completely randomly.
Pair Corralation between Mirae Asset and Wooyang
Assuming the 90 days trading horizon Mirae Asset is expected to generate 2.44 times less return on investment than Wooyang. But when comparing it to its historical volatility, Mirae Asset Daewoo is 2.41 times less risky than Wooyang. It trades about 0.02 of its potential returns per unit of risk. Wooyang Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 287,500 in Wooyang Co on September 3, 2024 and sell it today you would earn a total of 24,500 from holding Wooyang Co or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Wooyang Co
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Wooyang |
Mirae Asset and Wooyang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Wooyang
The main advantage of trading using opposite Mirae Asset and Wooyang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Wooyang 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 Wooyang will offset losses from the drop in Wooyang'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 |
| Wooyang vs. MetaLabs Co | Wooyang vs. PJ Metal Co | Wooyang vs. Heungkuk Metaltech CoLtd | Wooyang vs. Nable Communications |
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 Correlations module to find global opportunities by holding instruments from different markets.
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