Correlation Between Mirae Asset and Samsung KODEX
Can any of the company-specific risk be diversified away by investing in both Mirae Asset and Samsung KODEX 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 KODEX 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 KODEX IT, you can compare the effects of market volatilities on Mirae Asset and Samsung KODEX 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 KODEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirae Asset and Samsung KODEX.
Diversification Opportunities for Mirae Asset and Samsung KODEX
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mirae and Samsung is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Mirae Asset Daewoo and Samsung KODEX IT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung KODEX IT 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 KODEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung KODEX IT has no effect on the direction of Mirae Asset i.e., Mirae Asset and Samsung KODEX go up and down completely randomly.
Pair Corralation between Mirae Asset and Samsung KODEX
Assuming the 90 days trading horizon Mirae Asset Daewoo is expected to generate 0.84 times more return on investment than Samsung KODEX. However, Mirae Asset Daewoo is 1.19 times less risky than Samsung KODEX. It trades about -0.02 of its potential returns per unit of risk. Samsung KODEX IT is currently generating about -0.1 per unit of risk. If you would invest 401,000 in Mirae Asset Daewoo on September 25, 2024 and sell it today you would lose (3,500) from holding Mirae Asset Daewoo or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirae Asset Daewoo vs. Samsung KODEX IT
Performance |
| Timeline |
| Mirae Asset Daewoo |
| Samsung KODEX IT |
Mirae Asset and Samsung KODEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirae Asset and Samsung KODEX
The main advantage of trading using opposite Mirae Asset and Samsung KODEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirae Asset position performs unexpectedly, Samsung KODEX 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 KODEX will offset losses from the drop in Samsung KODEX'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 |
| Samsung KODEX vs. 456680 | Samsung KODEX vs. Busan Industrial Co | Samsung KODEX vs. Busan Ind | Samsung KODEX vs. Mirae Asset Daewoo |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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