Correlation Between MiraeAsset TIGER and MiraeAsset TIGER
Can any of the company-specific risk be diversified away by investing in both MiraeAsset TIGER and MiraeAsset TIGER 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 MiraeAsset TIGER and MiraeAsset TIGER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MiraeAsset TIGER 200 and MiraeAsset TIGER China, you can compare the effects of market volatilities on MiraeAsset TIGER and MiraeAsset TIGER 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 MiraeAsset TIGER with a short position of MiraeAsset TIGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of MiraeAsset TIGER and MiraeAsset TIGER.
Diversification Opportunities for MiraeAsset TIGER and MiraeAsset TIGER
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MiraeAsset and MiraeAsset is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding MiraeAsset TIGER 200 and MiraeAsset TIGER China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiraeAsset TIGER China and MiraeAsset TIGER 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 MiraeAsset TIGER 200 are associated (or correlated) with MiraeAsset TIGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MiraeAsset TIGER China has no effect on the direction of MiraeAsset TIGER i.e., MiraeAsset TIGER and MiraeAsset TIGER go up and down completely randomly.
Pair Corralation between MiraeAsset TIGER and MiraeAsset TIGER
Assuming the 90 days trading horizon MiraeAsset TIGER 200 is expected to under-perform the MiraeAsset TIGER. But the etf apears to be less risky and, when comparing its historical volatility, MiraeAsset TIGER 200 is 1.3 times less risky than MiraeAsset TIGER. The etf trades about -0.03 of its potential returns per unit of risk. The MiraeAsset TIGER China is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest 942,500 in MiraeAsset TIGER China on November 29, 2024 and sell it today you would earn a total of 148,000 from holding MiraeAsset TIGER China or generate 15.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MiraeAsset TIGER 200 vs. MiraeAsset TIGER China
Performance |
| Timeline |
| MiraeAsset TIGER 200 |
| MiraeAsset TIGER China |
MiraeAsset TIGER and MiraeAsset TIGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MiraeAsset TIGER and MiraeAsset TIGER
The main advantage of trading using opposite MiraeAsset TIGER and MiraeAsset TIGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MiraeAsset TIGER position performs unexpectedly, MiraeAsset TIGER 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 MiraeAsset TIGER will offset losses from the drop in MiraeAsset TIGER's long position.| MiraeAsset TIGER vs. MiraeAsset TIGER Quality | MiraeAsset TIGER vs. MiraeAsset TIGER NIKKEI225 | MiraeAsset TIGER vs. MiraeAsset TIGER Synth Morningstar | MiraeAsset TIGER vs. MiraeAsset TIGER Synth Japan |
| MiraeAsset TIGER vs. MiraeAsset TIGER Quality | MiraeAsset TIGER vs. MiraeAsset TIGER NIKKEI225 | MiraeAsset TIGER vs. MiraeAsset TIGER Synth Morningstar | MiraeAsset TIGER vs. MiraeAsset TIGER 200 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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