Correlation Between Pureun Mutual and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual and Mirae Asset 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 Pureun Mutual and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pureun Mutual Savings and Mirae Asset Daewoo, you can compare the effects of market volatilities on Pureun Mutual and Mirae Asset 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 Pureun Mutual with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Mirae Asset.
Diversification Opportunities for Pureun Mutual and Mirae Asset
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pureun and Mirae is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings and Mirae Asset Daewoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirae Asset Daewoo and Pureun Mutual 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 Pureun Mutual Savings are associated (or correlated) with Mirae Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirae Asset Daewoo has no effect on the direction of Pureun Mutual i.e., Pureun Mutual and Mirae Asset go up and down completely randomly.
Pair Corralation between Pureun Mutual and Mirae Asset
Assuming the 90 days trading horizon Pureun Mutual Savings is expected to under-perform the Mirae Asset. In addition to that, Pureun Mutual is 1.68 times more volatile than Mirae Asset Daewoo. It trades about 0.0 of its total potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.02 per unit of volatility. If you would invest 389,489 in Mirae Asset Daewoo on September 3, 2024 and sell it today you would earn a total of 58,511 from holding Mirae Asset Daewoo or generate 15.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Pureun Mutual Savings |
| Mirae Asset Daewoo |
Pureun Mutual and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Mirae Asset
The main advantage of trading using opposite Pureun Mutual and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual position performs unexpectedly, Mirae Asset 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 Mirae Asset will offset losses from the drop in Mirae Asset's long position.| Pureun Mutual vs. Kukdong Oil Chemicals | Pureun Mutual vs. SS TECH | Pureun Mutual vs. PJ Metal Co | Pureun Mutual vs. Daejung Chemicals Metals |
| Mirae Asset vs. Samlip General Foods | Mirae Asset vs. Pureun Mutual Savings | Mirae Asset vs. Sam Yang Foods | Mirae Asset vs. Samsung Life Insurance |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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