Correlation Between Mirae Asset and Fine Besteel
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Fine Besteel 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 Fine Besteel 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 Fine Besteel Co, you can compare the effects of market volatilities on Mirae Asset and Fine Besteel 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 Fine Besteel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Fine Besteel.
Diversification Opportunities for Mirae Asset and Fine Besteel
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mirae and Fine is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Fine Besteel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fine Besteel 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 Fine Besteel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fine Besteel has no effect on the direction of Mirae Asset i.e., Mirae Asset and Fine Besteel go up and down completely randomly.
Pair Corralation between Mirae Asset and Fine Besteel
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 0.56 times more return on investment than Fine Besteel. However, Mirae Asset Daewoo is 1.78 times less risky than Fine Besteel. It trades about -0.16 of its potential returns per unit of risk. Fine Besteel Co is currently generating about -0.13 per unit of risk. If you would invest 404,500 in Mirae Asset Daewoo on October 13, 2024 and sell it today you would lose (12,500) from holding Mirae Asset Daewoo or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Fine Besteel Co
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Fine Besteel |
Mirae Asset and Fine Besteel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Fine Besteel
The main advantage of trading using opposite Mirae Asset and Fine Besteel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Fine Besteel 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 Fine Besteel will offset losses from the drop in Fine Besteel'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 |
| Fine Besteel vs. Jb Financial | Fine Besteel vs. SeAH Besteel Corp | Fine Besteel vs. Incar Financial Service | Fine Besteel vs. Han Kook 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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