Correlation Between NICE Information and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both NICE Information 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 NICE Information and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NICE Information Service and Mirae Asset No2, you can compare the effects of market volatilities on NICE Information 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 NICE Information with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of NICE Information and Mirae Asset.
Diversification Opportunities for NICE Information and Mirae Asset
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NICE and Mirae is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding NICE Information Service and Mirae Asset No2 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirae Asset No2 and NICE Information 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 NICE Information Service 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 No2 has no effect on the direction of NICE Information i.e., NICE Information and Mirae Asset go up and down completely randomly.
Pair Corralation between NICE Information and Mirae Asset
Assuming the 90 days trading horizon NICE Information Service is expected to generate 0.76 times more return on investment than Mirae Asset. However, NICE Information Service is 1.32 times less risky than Mirae Asset. It trades about 0.1 of its potential returns per unit of risk. Mirae Asset No2 is currently generating about -0.14 per unit of risk. If you would invest 1,113,000 in NICE Information Service on August 28, 2024 and sell it today you would earn a total of 51,000 from holding NICE Information Service or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NICE Information Service vs. Mirae Asset No2
Performance |
| Timeline |
| NICE Information Service |
| Mirae Asset No2 |
NICE Information and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NICE Information and Mirae Asset
The main advantage of trading using opposite NICE Information and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NICE Information 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.The idea behind NICE Information Service and Mirae Asset No2 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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