Correlation Between Taewoong Logistics and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Taewoong Logistics 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 Taewoong Logistics and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taewoong Logistics CoLtd and Mirae Asset Daewoo, you can compare the effects of market volatilities on Taewoong Logistics 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 Taewoong Logistics with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taewoong Logistics and Mirae Asset.
Diversification Opportunities for Taewoong Logistics and Mirae Asset
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taewoong and Mirae is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Taewoong Logistics CoLtd 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 Taewoong Logistics 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 Taewoong Logistics CoLtd 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 Taewoong Logistics i.e., Taewoong Logistics and Mirae Asset go up and down completely randomly.
Pair Corralation between Taewoong Logistics and Mirae Asset
Assuming the 90 days trading horizon Taewoong Logistics CoLtd is expected to under-perform the Mirae Asset. In addition to that, Taewoong Logistics is 1.08 times more volatile than Mirae Asset Daewoo. It trades about -0.02 of its total potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.03 per unit of volatility. If you would invest 413,608 in Mirae Asset Daewoo on September 1, 2024 and sell it today you would earn a total of 34,392 from holding Mirae Asset Daewoo or generate 8.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.45% |
| Values | Daily Returns |
Taewoong Logistics CoLtd vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Taewoong Logistics CoLtd |
| Mirae Asset Daewoo |
Taewoong Logistics and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taewoong Logistics and Mirae Asset
The main advantage of trading using opposite Taewoong Logistics and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taewoong Logistics 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.| Taewoong Logistics vs. Dongbang Ship Machinery | Taewoong Logistics vs. KB Financial Group | Taewoong Logistics vs. Busan Industrial Co | Taewoong Logistics vs. Busan Ind |
| Mirae Asset vs. Daol Investment Securities | Mirae Asset vs. Dongbang Transport Logistics | Mirae Asset vs. Shinsegae Engineering Construction | Mirae Asset vs. KEPCO Engineering Construction |
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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