Correlation Between UNISEM and MiraeAsset TIGER
Can any of the company-specific risk be diversified away by investing in both UNISEM 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 UNISEM and MiraeAsset TIGER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNISEM Co and MiraeAsset TIGER Quality, you can compare the effects of market volatilities on UNISEM 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 UNISEM with a short position of MiraeAsset TIGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNISEM and MiraeAsset TIGER.
Diversification Opportunities for UNISEM and MiraeAsset TIGER
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UNISEM and MiraeAsset is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding UNISEM Co and MiraeAsset TIGER Quality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiraeAsset TIGER Quality 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 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 Quality has no effect on the direction of UNISEM i.e., UNISEM and MiraeAsset TIGER go up and down completely randomly.
Pair Corralation between UNISEM and MiraeAsset TIGER
Assuming the 90 days trading horizon UNISEM Co is expected to under-perform the MiraeAsset TIGER. In addition to that, UNISEM is 3.3 times more volatile than MiraeAsset TIGER Quality. It trades about -0.01 of its total potential returns per unit of risk. MiraeAsset TIGER Quality is currently generating about 0.04 per unit of volatility. If you would invest 1,079,794 in MiraeAsset TIGER Quality on September 4, 2024 and sell it today you would earn a total of 92,706 from holding MiraeAsset TIGER Quality or generate 8.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNISEM Co vs. MiraeAsset TIGER Quality
Performance |
| Timeline |
| UNISEM |
| MiraeAsset TIGER Quality |
UNISEM and MiraeAsset TIGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNISEM and MiraeAsset TIGER
The main advantage of trading using opposite UNISEM and MiraeAsset TIGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNISEM 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.| UNISEM vs. Coloray International Investment | UNISEM vs. NH Investment Securities | UNISEM vs. DB Insurance Co | UNISEM vs. Total Soft Bank |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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