Correlation Between Samsung Card and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Samsung Card 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 Samsung Card and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Card Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on Samsung Card 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 Samsung Card with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Card and Mirae Asset.
Diversification Opportunities for Samsung Card and Mirae Asset
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Samsung and Mirae is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Card 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 Samsung Card 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 Samsung Card 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 Samsung Card i.e., Samsung Card and Mirae Asset go up and down completely randomly.
Pair Corralation between Samsung Card and Mirae Asset
Assuming the 90 days trading horizon Samsung Card Co is expected to generate 0.74 times more return on investment than Mirae Asset. However, Samsung Card Co is 1.35 times less risky than Mirae Asset. It trades about 0.07 of its potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.04 per unit of risk. If you would invest 2,828,675 in Samsung Card Co on November 28, 2024 and sell it today you would earn a total of 1,711,325 from holding Samsung Card Co or generate 60.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Samsung Card Co vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Samsung Card |
| Mirae Asset Daewoo |
Samsung Card and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Card and Mirae Asset
The main advantage of trading using opposite Samsung Card and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Card 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.| Samsung Card vs. Korea Information Communications | Samsung Card vs. Haitai Confectionery Foods | Samsung Card vs. Lotte Data Communication | Samsung Card vs. Ssangyong Information Communication |
| Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. SK Hynix | Mirae Asset vs. HMM Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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