Correlation Between Mirae Asset and Hankukpackage
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Hankukpackage 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 Hankukpackage 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 Hankukpackage Co, you can compare the effects of market volatilities on Mirae Asset and Hankukpackage 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 Hankukpackage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Hankukpackage.
Diversification Opportunities for Mirae Asset and Hankukpackage
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mirae and Hankukpackage is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Hankukpackage Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hankukpackage 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 Hankukpackage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hankukpackage has no effect on the direction of Mirae Asset i.e., Mirae Asset and Hankukpackage go up and down completely randomly.
Pair Corralation between Mirae Asset and Hankukpackage
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 0.46 times more return on investment than Hankukpackage. However, Mirae Asset Daewoo is 2.2 times less risky than Hankukpackage. It trades about -0.01 of its potential returns per unit of risk. Hankukpackage Co is currently generating about -0.03 per unit of risk. If you would invest 402,000 in Mirae Asset Daewoo on October 30, 2024 and sell it today you would lose (2,000) from holding Mirae Asset Daewoo or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Hankukpackage Co
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Hankukpackage |
Mirae Asset and Hankukpackage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Hankukpackage
The main advantage of trading using opposite Mirae Asset and Hankukpackage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Hankukpackage 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 Hankukpackage will offset losses from the drop in Hankukpackage's 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 |
| Hankukpackage vs. SeAH Besteel Corp | Hankukpackage vs. Hyundai Engineering Plastics | Hankukpackage vs. Daehan Steel | Hankukpackage vs. Daejoo Electronic Materials |
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 Stocks Directory module to find actively traded stocks across global markets.
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