Correlation Between Mirae Asset and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Samsung Electronics 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 Electronics 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 Electronics Co, you can compare the effects of market volatilities on Mirae Asset and Samsung Electronics 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 Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Samsung Electronics.
Diversification Opportunities for Mirae Asset and Samsung Electronics
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mirae and Samsung is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Mirae Asset i.e., Mirae Asset and Samsung Electronics go up and down completely randomly.
Pair Corralation between Mirae Asset and Samsung Electronics
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 0.66 times more return on investment than Samsung Electronics. However, Mirae Asset Daewoo is 1.51 times less risky than Samsung Electronics. It trades about 0.03 of its potential returns per unit of risk. Samsung Electronics Co is currently generating about 0.0 per unit of risk. If you would invest 348,860 in Mirae Asset Daewoo on August 25, 2024 and sell it today you would earn a total of 53,140 from holding Mirae Asset Daewoo or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Samsung Electronics Co
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Samsung Electronics |
Mirae Asset and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Samsung Electronics
The main advantage of trading using opposite Mirae Asset and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Samsung Electronics 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 Electronics will offset losses from the drop in Samsung Electronics' long position.| Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. LG Energy Solution | Mirae Asset vs. SK Hynix |
| Samsung Electronics vs. Mobileleader CoLtd | Samsung Electronics vs. Innowireless Co | Samsung Electronics vs. Daechang Steel Co | Samsung Electronics vs. Hanil Iron Steel |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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