Correlation Between Hansol Homedeco and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Hansol Homedeco 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 Hansol Homedeco and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansol Homedeco Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on Hansol Homedeco 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 Hansol Homedeco with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansol Homedeco and Mirae Asset.
Diversification Opportunities for Hansol Homedeco and Mirae Asset
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hansol and Mirae is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Hansol Homedeco Co 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 Hansol Homedeco 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 Hansol Homedeco Co 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 Hansol Homedeco i.e., Hansol Homedeco and Mirae Asset go up and down completely randomly.
Pair Corralation between Hansol Homedeco and Mirae Asset
Assuming the 90 days trading horizon Hansol Homedeco Co is expected to under-perform the Mirae Asset. In addition to that, Hansol Homedeco is 1.23 times more volatile than Mirae Asset Daewoo. It trades about -0.05 of its total potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.05 per unit of volatility. If you would invest 368,500 in Mirae Asset Daewoo on September 3, 2024 and sell it today you would earn a total of 33,500 from holding Mirae Asset Daewoo or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansol Homedeco Co vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Hansol Homedeco |
| Mirae Asset Daewoo |
Hansol Homedeco and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansol Homedeco and Mirae Asset
The main advantage of trading using opposite Hansol Homedeco and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansol Homedeco 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.| Hansol Homedeco vs. AptaBio Therapeutics | Hansol Homedeco vs. Daewoo SBI SPAC | Hansol Homedeco vs. Dream Security co | Hansol Homedeco vs. Microfriend |
| Mirae Asset vs. ChipsMedia | Mirae Asset vs. Kisan Telecom Co | Mirae Asset vs. T3 Entertainment Co | Mirae Asset vs. MEDIANA CoLtd |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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