Correlation Between Koryo Credit and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Koryo Credit 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 Koryo Credit and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koryo Credit Information and Mirae Asset Daewoo, you can compare the effects of market volatilities on Koryo Credit 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 Koryo Credit with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koryo Credit and Mirae Asset.
Diversification Opportunities for Koryo Credit and Mirae Asset
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koryo and Mirae is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Koryo Credit Information 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 Koryo Credit 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 Koryo Credit Information 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 Koryo Credit i.e., Koryo Credit and Mirae Asset go up and down completely randomly.
Pair Corralation between Koryo Credit and Mirae Asset
Assuming the 90 days trading horizon Koryo Credit is expected to generate 1.81 times less return on investment than Mirae Asset. But when comparing it to its historical volatility, Koryo Credit Information is 5.95 times less risky than Mirae Asset. It trades about 0.17 of its potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 428,000 in Mirae Asset Daewoo on September 12, 2024 and sell it today you would earn a total of 17,000 from holding Mirae Asset Daewoo or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Koryo Credit Information vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Koryo Credit Information |
| Mirae Asset Daewoo |
Koryo Credit and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koryo Credit and Mirae Asset
The main advantage of trading using opposite Koryo Credit and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koryo Credit 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.| Koryo Credit vs. Korea New Network | Koryo Credit vs. Solution Advanced Technology | Koryo Credit vs. Busan Industrial Co | Koryo Credit vs. Busan Ind |
| Mirae Asset vs. Hanjoo Light Metal | Mirae Asset vs. Youngsin Metal Industrial | Mirae Asset vs. Dongwon Metal Co | Mirae Asset vs. DONGKUK TED METAL |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |