Correlation Between Mirae Asset and CU Medical
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and CU Medical 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 CU Medical 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 CU Medical Systems, you can compare the effects of market volatilities on Mirae Asset and CU Medical 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 CU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and CU Medical.
Diversification Opportunities for Mirae Asset and CU Medical
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mirae and 115480 is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and CU Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CU Medical Systems 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 CU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CU Medical Systems has no effect on the direction of Mirae Asset i.e., Mirae Asset and CU Medical go up and down completely randomly.
Pair Corralation between Mirae Asset and CU Medical
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 3.59 times more return on investment than CU Medical. However, Mirae Asset is 3.59 times more volatile than CU Medical Systems. It trades about 0.05 of its potential returns per unit of risk. CU Medical Systems is currently generating about -0.4 per unit of risk. If you would invest 427,000 in Mirae Asset Daewoo on August 27, 2024 and sell it today you would earn a total of 13,000 from holding Mirae Asset Daewoo or generate 3.04% 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. CU Medical Systems
Performance |
| Timeline |
| Mirae Asset Daewoo |
| CU Medical Systems |
Mirae Asset and CU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and CU Medical
The main advantage of trading using opposite Mirae Asset and CU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, CU Medical 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 CU Medical will offset losses from the drop in CU Medical's long position.| Mirae Asset vs. Clean Science co | Mirae Asset vs. System and Application | Mirae Asset vs. SungMoon Electronics Co | Mirae Asset vs. LG Electronics |
| CU Medical vs. Medy Tox | CU Medical vs. Busan Industrial Co | CU Medical vs. Busan Ind | CU Medical vs. Mirae Asset Daewoo |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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