Correlation Between Dongil Metal and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Dongil Metal 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 Dongil Metal and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dongil Metal Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on Dongil Metal 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 Dongil Metal with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongil Metal and Mirae Asset.
Diversification Opportunities for Dongil Metal and Mirae Asset
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dongil and Mirae is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Dongil Metal 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 Dongil Metal 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 Dongil Metal 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 Dongil Metal i.e., Dongil Metal and Mirae Asset go up and down completely randomly.
Pair Corralation between Dongil Metal and Mirae Asset
Assuming the 90 days trading horizon Dongil Metal Co is expected to under-perform the Mirae Asset. But the stock apears to be less risky and, when comparing its historical volatility, Dongil Metal Co is 1.25 times less risky than Mirae Asset. The stock trades about -0.04 of its potential returns per unit of risk. The Mirae Asset Daewoo is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 355,000 in Mirae Asset Daewoo on October 13, 2024 and sell it today you would earn a total of 37,000 from holding Mirae Asset Daewoo or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongil Metal Co vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Dongil Metal |
| Mirae Asset Daewoo |
Dongil Metal and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongil Metal and Mirae Asset
The main advantage of trading using opposite Dongil Metal and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongil Metal 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.| Dongil Metal vs. Inzi Display CoLtd | Dongil Metal vs. Innowireless Co | Dongil Metal vs. Nable Communications | Dongil Metal vs. Seoul Electronics Telecom |
| Mirae Asset vs. Korean Air Lines | Mirae Asset vs. LG Display Co | Mirae Asset vs. Dongil Metal Co | Mirae Asset vs. Iljin Display |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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