Correlation Between Mirae Asset and KBSTAR EURO
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and KBSTAR EURO 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 KBSTAR EURO 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 KBSTAR EURO STOXX, you can compare the effects of market volatilities on Mirae Asset and KBSTAR EURO 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 KBSTAR EURO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and KBSTAR EURO.
Diversification Opportunities for Mirae Asset and KBSTAR EURO
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mirae and KBSTAR is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and KBSTAR EURO STOXX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBSTAR EURO STOXX 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 KBSTAR EURO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBSTAR EURO STOXX has no effect on the direction of Mirae Asset i.e., Mirae Asset and KBSTAR EURO go up and down completely randomly.
Pair Corralation between Mirae Asset and KBSTAR EURO
Assuming the 90 days trading horizon Mirae Asset is expected to generate 2.31 times less return on investment than KBSTAR EURO. But when comparing it to its historical volatility, Mirae Asset Daewoo is 1.2 times less risky than KBSTAR EURO. It trades about 0.34 of its potential returns per unit of risk. KBSTAR EURO STOXX is currently generating about 0.65 of returns per unit of risk over similar time horizon. If you would invest 1,358,500 in KBSTAR EURO STOXX on November 5, 2024 and sell it today you would earn a total of 104,500 from holding KBSTAR EURO STOXX or generate 7.69% 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. KBSTAR EURO STOXX
Performance |
| Timeline |
| Mirae Asset Daewoo |
| KBSTAR EURO STOXX |
Mirae Asset and KBSTAR EURO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and KBSTAR EURO
The main advantage of trading using opposite Mirae Asset and KBSTAR EURO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, KBSTAR EURO 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 KBSTAR EURO will offset losses from the drop in KBSTAR EURO's long position.| Mirae Asset vs. Anam Electronics Co | Mirae Asset vs. Clean Science co | Mirae Asset vs. Sungmoon Electronics Co | Mirae Asset vs. Mgame Corp |
| KBSTAR EURO vs. KBSTAR 200TR | KBSTAR EURO vs. KBSTAR HealthCare Fixed | KBSTAR EURO vs. KBSTAR Short Term IG | KBSTAR EURO vs. KBSTAR TDF2050 Active |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |