Correlation Between Global Standard and Mirai Semiconductors
Can any of the company-specific risk be diversified away by investing in both Global Standard and Mirai Semiconductors 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 Global Standard and Mirai Semiconductors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Standard Technology and Mirai Semiconductors Co, you can compare the effects of market volatilities on Global Standard and Mirai Semiconductors 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 Global Standard with a short position of Mirai Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Standard and Mirai Semiconductors.
Diversification Opportunities for Global Standard and Mirai Semiconductors
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Mirai is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Global Standard Technology and Mirai Semiconductors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirai Semiconductors and Global Standard 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 Global Standard Technology are associated (or correlated) with Mirai Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirai Semiconductors has no effect on the direction of Global Standard i.e., Global Standard and Mirai Semiconductors go up and down completely randomly.
Pair Corralation between Global Standard and Mirai Semiconductors
Assuming the 90 days trading horizon Global Standard Technology is expected to generate 0.86 times more return on investment than Mirai Semiconductors. However, Global Standard Technology is 1.16 times less risky than Mirai Semiconductors. It trades about 0.27 of its potential returns per unit of risk. Mirai Semiconductors Co is currently generating about 0.07 per unit of risk. If you would invest 1,654,592 in Global Standard Technology on October 22, 2024 and sell it today you would earn a total of 174,408 from holding Global Standard Technology or generate 10.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Global Standard Technology vs. Mirai Semiconductors Co
Performance |
| Timeline |
| Global Standard Tech |
| Mirai Semiconductors |
Global Standard and Mirai Semiconductors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Standard and Mirai Semiconductors
The main advantage of trading using opposite Global Standard and Mirai Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Standard position performs unexpectedly, Mirai Semiconductors 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 Mirai Semiconductors will offset losses from the drop in Mirai Semiconductors' long position.| Global Standard vs. Jeju Bank | Global Standard vs. KB Financial Group | Global Standard vs. Samsung Life Insurance | Global Standard vs. Puloon Technology |
| Mirai Semiconductors vs. Korea Information Engineering | Mirai Semiconductors vs. Global Standard Technology | Mirai Semiconductors vs. HB Technology TD | Mirai Semiconductors vs. Daou Technology |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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