Correlation Between Mirae Asset and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Eugene Technology 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 Eugene Technology 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 Eugene Technology CoLtd, you can compare the effects of market volatilities on Mirae Asset and Eugene Technology 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 Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Eugene Technology.
Diversification Opportunities for Mirae Asset and Eugene Technology
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Mirae and Eugene is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd 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 Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of Mirae Asset i.e., Mirae Asset and Eugene Technology go up and down completely randomly.
Pair Corralation between Mirae Asset and Eugene Technology
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to under-perform the Eugene Technology. But the stock apears to be less risky and, when comparing its historical volatility, Mirae Asset Daewoo is 3.59 times less risky than Eugene Technology. The stock trades about -0.15 of its potential returns per unit of risk. The Eugene Technology CoLtd is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,395,000 in Eugene Technology CoLtd on October 13, 2024 and sell it today you would earn a total of 330,000 from holding Eugene Technology CoLtd or generate 9.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Eugene Technology CoLtd
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Eugene Technology CoLtd |
Mirae Asset and Eugene Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Eugene Technology
The main advantage of trading using opposite Mirae Asset and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Eugene Technology 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 Eugene Technology will offset losses from the drop in Eugene Technology's long position.| Mirae Asset vs. Eugene Technology CoLtd | Mirae Asset vs. Daou Technology | Mirae Asset vs. LG Household Healthcare | Mirae Asset vs. Seers Technology |
| Eugene Technology vs. Sung Bo Chemicals | Eugene Technology vs. Nable Communications | Eugene Technology vs. Kukdong Oil Chemicals | Eugene Technology vs. Polaris Office Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |