Correlation Between UNISEM and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both UNISEM 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 UNISEM and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNISEM Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on UNISEM 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 UNISEM with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNISEM and Mirae Asset.
Diversification Opportunities for UNISEM and Mirae Asset
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UNISEM and Mirae is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding UNISEM 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 UNISEM 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 UNISEM 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 UNISEM i.e., UNISEM and Mirae Asset go up and down completely randomly.
Pair Corralation between UNISEM and Mirae Asset
Assuming the 90 days trading horizon UNISEM Co is expected to under-perform the Mirae Asset. In addition to that, UNISEM is 1.44 times more volatile than Mirae Asset Daewoo. It trades about -0.27 of its total potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.0 per unit of volatility. If you would invest 403,500 in Mirae Asset Daewoo on September 1, 2024 and sell it today you would lose (1,500) from holding Mirae Asset Daewoo or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
UNISEM Co vs. Mirae Asset Daewoo
Performance |
| Timeline |
| UNISEM |
| Mirae Asset Daewoo |
UNISEM and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNISEM and Mirae Asset
The main advantage of trading using opposite UNISEM and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNISEM 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.| UNISEM vs. Shinsegae Information Communication | UNISEM vs. Dongbu Insurance Co | UNISEM vs. Daejoo Electronic Materials | UNISEM vs. Shinil Electronics Co |
| Mirae Asset vs. LG Display Co | Mirae Asset vs. Hansol Homedeco Co | Mirae Asset vs. BGF Retail Co | Mirae Asset vs. Display Tech 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 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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