Correlation Between Busan Industrial and MiraeAsset TIGER
Can any of the company-specific risk be diversified away by investing in both Busan Industrial and MiraeAsset TIGER 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 Busan Industrial and MiraeAsset TIGER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Busan Industrial Co and MiraeAsset TIGER Synth Japan, you can compare the effects of market volatilities on Busan Industrial and MiraeAsset TIGER 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 Busan Industrial with a short position of MiraeAsset TIGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Busan Industrial and MiraeAsset TIGER.
Diversification Opportunities for Busan Industrial and MiraeAsset TIGER
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Busan and MiraeAsset is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Busan Industrial Co and MiraeAsset TIGER Synth Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiraeAsset TIGER Synth and Busan Industrial 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 Busan Industrial Co are associated (or correlated) with MiraeAsset TIGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiraeAsset TIGER Synth has no effect on the direction of Busan Industrial i.e., Busan Industrial and MiraeAsset TIGER go up and down completely randomly.
Pair Corralation between Busan Industrial and MiraeAsset TIGER
Assuming the 90 days trading horizon Busan Industrial Co is expected to generate 8.04 times more return on investment than MiraeAsset TIGER. However, Busan Industrial is 8.04 times more volatile than MiraeAsset TIGER Synth Japan. It trades about 0.09 of its potential returns per unit of risk. MiraeAsset TIGER Synth Japan is currently generating about -0.03 per unit of risk. If you would invest 5,600,000 in Busan Industrial Co on September 1, 2024 and sell it today you would earn a total of 540,000 from holding Busan Industrial Co or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Busan Industrial Co vs. MiraeAsset TIGER Synth Japan
Performance |
| Timeline |
| Busan Industrial |
| MiraeAsset TIGER Synth |
Busan Industrial and MiraeAsset TIGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Busan Industrial and MiraeAsset TIGER
The main advantage of trading using opposite Busan Industrial and MiraeAsset TIGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Busan Industrial position performs unexpectedly, MiraeAsset TIGER 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 MiraeAsset TIGER will offset losses from the drop in MiraeAsset TIGER's long position.| Busan Industrial vs. AptaBio Therapeutics | Busan Industrial vs. Daewoo SBI SPAC | Busan Industrial vs. Dream Security co | Busan Industrial vs. Microfriend |
| MiraeAsset TIGER vs. Busan Industrial Co | MiraeAsset TIGER vs. Busan Ind | MiraeAsset TIGER vs. Mirae Asset Daewoo | MiraeAsset TIGER vs. Shinhan WTI Futures |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |