Correlation Between Mirae Asset and Samsung Asset
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Samsung Asset 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 Samsung Asset 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 Samsung Asset Management, you can compare the effects of market volatilities on Mirae Asset and Samsung Asset 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 Samsung Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Samsung Asset.
Diversification Opportunities for Mirae Asset and Samsung Asset
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mirae and Samsung is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Samsung Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Asset Management 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 Samsung Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Asset Management has no effect on the direction of Mirae Asset i.e., Mirae Asset and Samsung Asset go up and down completely randomly.
Pair Corralation between Mirae Asset and Samsung Asset
Assuming the 90 days trading horizon Mirae Asset is expected to generate 1.24 times less return on investment than Samsung Asset. In addition to that, Mirae Asset is 1.94 times more volatile than Samsung Asset Management. It trades about 0.04 of its total potential returns per unit of risk. Samsung Asset Management is currently generating about 0.09 per unit of volatility. If you would invest 1,282,312 in Samsung Asset Management on September 3, 2024 and sell it today you would earn a total of 359,688 from holding Samsung Asset Management or generate 28.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Samsung Asset Management
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Samsung Asset Management |
Mirae Asset and Samsung Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Samsung Asset
The main advantage of trading using opposite Mirae Asset and Samsung Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Samsung Asset 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 Samsung Asset will offset losses from the drop in Samsung Asset's long position.| Mirae Asset vs. Samlip General Foods | Mirae Asset vs. Pureun Mutual Savings | Mirae Asset vs. Sam Yang Foods | Mirae Asset vs. Samsung Life Insurance |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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