Correlation Between Mirae Asset and Mobirix
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Mobirix 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 Mobirix 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 Mobirix Co, you can compare the effects of market volatilities on Mirae Asset and Mobirix 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 Mobirix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Mobirix.
Diversification Opportunities for Mirae Asset and Mobirix
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mirae and Mobirix is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Mobirix Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobirix 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 Mobirix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobirix has no effect on the direction of Mirae Asset i.e., Mirae Asset and Mobirix go up and down completely randomly.
Pair Corralation between Mirae Asset and Mobirix
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 2.46 times more return on investment than Mobirix. However, Mirae Asset is 2.46 times more volatile than Mobirix Co. It trades about 0.08 of its potential returns per unit of risk. Mobirix Co is currently generating about -0.1 per unit of risk. If you would invest 425,500 in Mirae Asset Daewoo on September 5, 2024 and sell it today you would earn a total of 37,000 from holding Mirae Asset Daewoo or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Mobirix Co
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Mobirix |
Mirae Asset and Mobirix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Mobirix
The main advantage of trading using opposite Mirae Asset and Mobirix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Mobirix 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 Mobirix will offset losses from the drop in Mobirix's long position.| Mirae Asset vs. Nam Hwa Construction | Mirae Asset vs. Seoam Machinery Industry | Mirae Asset vs. Dongbang Ship Machinery | Mirae Asset vs. Sangshin Electronics Co |
| Mobirix vs. Aniplus | Mobirix vs. Busan Industrial Co | Mobirix vs. Busan Ind | Mobirix 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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