Correlation Between Mirae Asset and Oscotec
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Oscotec 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 Oscotec 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 Oscotec, you can compare the effects of market volatilities on Mirae Asset and Oscotec 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 Oscotec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Oscotec.
Diversification Opportunities for Mirae Asset and Oscotec
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirae and Oscotec is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Oscotec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oscotec 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 Oscotec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oscotec has no effect on the direction of Mirae Asset i.e., Mirae Asset and Oscotec go up and down completely randomly.
Pair Corralation between Mirae Asset and Oscotec
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 0.34 times more return on investment than Oscotec. However, Mirae Asset Daewoo is 2.95 times less risky than Oscotec. It trades about 0.06 of its potential returns per unit of risk. Oscotec is currently generating about -0.02 per unit of risk. If you would invest 355,000 in Mirae Asset Daewoo on October 13, 2024 and sell it today you would earn a total of 37,000 from holding Mirae Asset Daewoo or generate 10.42% 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. Oscotec
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Oscotec |
Mirae Asset and Oscotec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Oscotec
The main advantage of trading using opposite Mirae Asset and Oscotec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Oscotec 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 Oscotec will offset losses from the drop in Oscotec's long position.| Mirae Asset vs. Korean Air Lines | Mirae Asset vs. LG Display Co | Mirae Asset vs. Dongil Metal Co | Mirae Asset vs. Iljin Display |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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