Correlation Between Chorokbaem Healthcare and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Chorokbaem Healthcare 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 Chorokbaem Healthcare and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chorokbaem Healthcare Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on Chorokbaem Healthcare 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 Chorokbaem Healthcare with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chorokbaem Healthcare and Mirae Asset.
Diversification Opportunities for Chorokbaem Healthcare and Mirae Asset
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chorokbaem and Mirae is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Chorokbaem Healthcare 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 Chorokbaem Healthcare 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 Chorokbaem Healthcare 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 Chorokbaem Healthcare i.e., Chorokbaem Healthcare and Mirae Asset go up and down completely randomly.
Pair Corralation between Chorokbaem Healthcare and Mirae Asset
Assuming the 90 days trading horizon Chorokbaem Healthcare Co is expected to under-perform the Mirae Asset. But the stock apears to be less risky and, when comparing its historical volatility, Chorokbaem Healthcare Co is 1.69 times less risky than Mirae Asset. The stock trades about -0.47 of its potential returns per unit of risk. The Mirae Asset Daewoo is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 855,000 in Mirae Asset Daewoo on September 12, 2024 and sell it today you would earn a total of 9,000 from holding Mirae Asset Daewoo or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chorokbaem Healthcare Co vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Chorokbaem Healthcare |
| Mirae Asset Daewoo |
Chorokbaem Healthcare and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chorokbaem Healthcare and Mirae Asset
The main advantage of trading using opposite Chorokbaem Healthcare and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chorokbaem Healthcare 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.| Chorokbaem Healthcare vs. Samsung Electronics Co | Chorokbaem Healthcare vs. Samsung Electronics Co | Chorokbaem Healthcare vs. SK Hynix | Chorokbaem Healthcare vs. SK Holdings Co |
| Mirae Asset vs. SKONEC Entertainment Co | Mirae Asset vs. FNC Entertainment Co | Mirae Asset vs. MEDIANA CoLtd | Mirae Asset vs. Cots Technology 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |