Correlation Between Mirae Asset and SEOJEON ELECTRIC
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC 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 SEOJEON ELECTRIC MACHINERY, you can compare the effects of market volatilities on Mirae Asset and SEOJEON ELECTRIC 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 SEOJEON ELECTRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and SEOJEON ELECTRIC.
Diversification Opportunities for Mirae Asset and SEOJEON ELECTRIC
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirae and SEOJEON is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and SEOJEON ELECTRIC MACHINERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOJEON ELECTRIC MAC 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 SEOJEON ELECTRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOJEON ELECTRIC MAC has no effect on the direction of Mirae Asset i.e., Mirae Asset and SEOJEON ELECTRIC go up and down completely randomly.
Pair Corralation between Mirae Asset and SEOJEON ELECTRIC
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 0.46 times more return on investment than SEOJEON ELECTRIC. However, Mirae Asset Daewoo is 2.18 times less risky than SEOJEON ELECTRIC. It trades about 0.02 of its potential returns per unit of risk. SEOJEON ELECTRIC MACHINERY is currently generating about 0.0 per unit of risk. If you would invest 403,039 in Mirae Asset Daewoo on September 26, 2024 and sell it today you would earn a total of 32,461 from holding Mirae Asset Daewoo or generate 8.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. SEOJEON ELECTRIC MACHINERY
Performance |
| Timeline |
| Mirae Asset Daewoo |
| SEOJEON ELECTRIC MAC |
Mirae Asset and SEOJEON ELECTRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and SEOJEON ELECTRIC
The main advantage of trading using opposite Mirae Asset and SEOJEON ELECTRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, SEOJEON ELECTRIC 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 SEOJEON ELECTRIC will offset losses from the drop in SEOJEON ELECTRIC's long position.| Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. LG Energy Solution | Mirae Asset vs. SK Hynix |
| SEOJEON ELECTRIC vs. Busan Industrial Co | SEOJEON ELECTRIC vs. Busan Ind | SEOJEON ELECTRIC vs. Mirae Asset Daewoo | SEOJEON ELECTRIC vs. Shinhan WTI Futures |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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