Correlation Between Mirae Asset and Air Busan
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Air Busan 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 Air Busan 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 Air Busan Co, you can compare the effects of market volatilities on Mirae Asset and Air Busan 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 Air Busan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Air Busan.
Diversification Opportunities for Mirae Asset and Air Busan
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mirae and Air is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Air Busan Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Busan 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 Air Busan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Busan has no effect on the direction of Mirae Asset i.e., Mirae Asset and Air Busan go up and down completely randomly.
Pair Corralation between Mirae Asset and Air Busan
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 1.23 times more return on investment than Air Busan. However, Mirae Asset is 1.23 times more volatile than Air Busan Co. It trades about 0.03 of its potential returns per unit of risk. Air Busan Co is currently generating about -0.03 per unit of risk. If you would invest 384,785 in Mirae Asset Daewoo on August 27, 2024 and sell it today you would earn a total of 55,215 from holding Mirae Asset Daewoo or generate 14.35% 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. Air Busan Co
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Air Busan |
Mirae Asset and Air Busan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Air Busan
The main advantage of trading using opposite Mirae Asset and Air Busan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Air Busan 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 Air Busan will offset losses from the drop in Air Busan'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 |
| Air Busan vs. Busan Industrial Co | Air Busan vs. Busan Ind | Air Busan vs. Mirae Asset Daewoo | Air Busan vs. UNISEM Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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