Correlation Between Mirae Asset and MiraeAsset TIGER
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and MiraeAsset TIGER 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 MiraeAsset TIGER 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 MiraeAsset TIGER Quality, you can compare the effects of market volatilities on Mirae Asset and MiraeAsset TIGER 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 MiraeAsset TIGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and MiraeAsset TIGER.
Diversification Opportunities for Mirae Asset and MiraeAsset TIGER
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mirae and MiraeAsset is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and MiraeAsset TIGER Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiraeAsset TIGER Quality 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 MiraeAsset TIGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiraeAsset TIGER Quality has no effect on the direction of Mirae Asset i.e., Mirae Asset and MiraeAsset TIGER go up and down completely randomly.
Pair Corralation between Mirae Asset and MiraeAsset TIGER
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 2.1 times more return on investment than MiraeAsset TIGER. However, Mirae Asset is 2.1 times more volatile than MiraeAsset TIGER Quality. It trades about 0.04 of its potential returns per unit of risk. MiraeAsset TIGER Quality is currently generating about 0.04 per unit of risk. If you would invest 387,187 in Mirae Asset Daewoo on September 2, 2024 and sell it today you would earn a total of 60,813 from holding Mirae Asset Daewoo or generate 15.71% 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. MiraeAsset TIGER Quality
Performance |
| Timeline |
| Mirae Asset Daewoo |
| MiraeAsset TIGER Quality |
Mirae Asset and MiraeAsset TIGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and MiraeAsset TIGER
The main advantage of trading using opposite Mirae Asset and MiraeAsset TIGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, MiraeAsset TIGER 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 MiraeAsset TIGER will offset losses from the drop in MiraeAsset TIGER'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 |
| MiraeAsset TIGER vs. Busan Industrial Co | MiraeAsset TIGER vs. Busan Ind | MiraeAsset TIGER vs. Mirae Asset Daewoo | MiraeAsset TIGER 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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