Correlation Between LockLock and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both LockLock 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 LockLock and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LockLock Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on LockLock 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 LockLock with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of LockLock and Mirae Asset.
Diversification Opportunities for LockLock and Mirae Asset
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LockLock and Mirae is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding LockLock 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 LockLock 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 LockLock 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 LockLock i.e., LockLock and Mirae Asset go up and down completely randomly.
Pair Corralation between LockLock and Mirae Asset
Assuming the 90 days trading horizon LockLock is expected to generate 1.03 times less return on investment than Mirae Asset. But when comparing it to its historical volatility, LockLock Co is 1.05 times less risky than Mirae Asset. It trades about 0.05 of its potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 624,252 in Mirae Asset Daewoo on September 4, 2024 and sell it today you would earn a total of 252,748 from holding Mirae Asset Daewoo or generate 40.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
LockLock Co vs. Mirae Asset Daewoo
Performance |
| Timeline |
| LockLock |
| Mirae Asset Daewoo |
LockLock and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LockLock and Mirae Asset
The main advantage of trading using opposite LockLock and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LockLock 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.| LockLock vs. LG Chemicals | LockLock vs. POSCO Holdings | LockLock vs. Lotte Chemical Corp | LockLock vs. Hyundai Steel |
| Mirae Asset vs. Inzi Display CoLtd | Mirae Asset vs. Alton Sports CoLtd | Mirae Asset vs. Lotte Non Life Insurance | Mirae Asset vs. Chorokbaem Healthcare Co |
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 Correlations module to find global opportunities by holding instruments from different markets.
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