Correlation Between Hankukpackage and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Hankukpackage 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 Hankukpackage and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hankukpackage Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on Hankukpackage 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 Hankukpackage with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hankukpackage and Mirae Asset.
Diversification Opportunities for Hankukpackage and Mirae Asset
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hankukpackage and Mirae is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hankukpackage 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 Hankukpackage 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 Hankukpackage 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 Hankukpackage i.e., Hankukpackage and Mirae Asset go up and down completely randomly.
Pair Corralation between Hankukpackage and Mirae Asset
Assuming the 90 days trading horizon Hankukpackage Co is expected to under-perform the Mirae Asset. In addition to that, Hankukpackage is 2.2 times more volatile than Mirae Asset Daewoo. It trades about -0.03 of its total potential returns per unit of risk. Mirae Asset Daewoo is currently generating about -0.01 per unit of volatility. If you would invest 402,000 in Mirae Asset Daewoo on October 30, 2024 and sell it today you would lose (2,000) from holding Mirae Asset Daewoo or give up 0.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hankukpackage Co vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Hankukpackage |
| Mirae Asset Daewoo |
Hankukpackage and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hankukpackage and Mirae Asset
The main advantage of trading using opposite Hankukpackage and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hankukpackage 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.| Hankukpackage vs. SeAH Besteel Corp | Hankukpackage vs. Hyundai Engineering Plastics | Hankukpackage vs. Daehan Steel | Hankukpackage vs. Daejoo Electronic Materials |
| Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. LG Energy Solution | Mirae Asset vs. SK Hynix |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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