Correlation Between Mirae Asset and Hanilcmt
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Hanilcmt 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 Hanilcmt 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 Hanilcmt Co, you can compare the effects of market volatilities on Mirae Asset and Hanilcmt 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 Hanilcmt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Hanilcmt.
Diversification Opportunities for Mirae Asset and Hanilcmt
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mirae and Hanilcmt is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Hanilcmt Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanilcmt 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 Hanilcmt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanilcmt has no effect on the direction of Mirae Asset i.e., Mirae Asset and Hanilcmt go up and down completely randomly.
Pair Corralation between Mirae Asset and Hanilcmt
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to under-perform the Hanilcmt. But the stock apears to be less risky and, when comparing its historical volatility, Mirae Asset Daewoo is 1.86 times less risky than Hanilcmt. The stock trades about -0.1 of its potential returns per unit of risk. The Hanilcmt Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,492,693 in Hanilcmt Co on October 20, 2024 and sell it today you would earn a total of 59,307 from holding Hanilcmt Co or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Hanilcmt Co
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Hanilcmt |
Mirae Asset and Hanilcmt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Hanilcmt
The main advantage of trading using opposite Mirae Asset and Hanilcmt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Hanilcmt 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 Hanilcmt will offset losses from the drop in Hanilcmt's long position.| Mirae Asset vs. Ilji Technology Co | Mirae Asset vs. Korean Reinsurance Co | Mirae Asset vs. Netmarble Games Corp | Mirae Asset vs. Hana Technology Co |
| Hanilcmt vs. Posco Chemical Co | Hanilcmt vs. SK Hynix | Hanilcmt vs. NSN Co | Hanilcmt vs. JYP Entertainment Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |