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 Synth Japan and MiraeAsset TIGER NIKKEI225, 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
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MiraeAsset and MiraeAsset is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding MiraeAsset TIGER Synth Japan and MiraeAsset TIGER NIKKEI225 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MiraeAsset TIGER NIK 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 Synth Japan 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 NIK 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 Synth Japan is expected to under-perform the MiraeAsset TIGER. But the etf apears to be less risky and, when comparing its historical volatility, MiraeAsset TIGER Synth Japan is 1.12 times less risky than MiraeAsset TIGER. The etf trades about -0.03 of its potential returns per unit of risk. The MiraeAsset TIGER NIKKEI225 is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,152,500 in MiraeAsset TIGER NIKKEI225 on September 1, 2024 and sell it today you would lose (9,500) from holding MiraeAsset TIGER NIKKEI225 or give up 0.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MiraeAsset TIGER Synth Japan vs. MiraeAsset TIGER NIKKEI225
Performance |
| Timeline |
| MiraeAsset TIGER Synth |
| MiraeAsset TIGER NIK |
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. Busan Industrial Co | MiraeAsset TIGER vs. Busan Ind | MiraeAsset TIGER vs. Mirae Asset Daewoo | MiraeAsset TIGER vs. Shinhan WTI Futures |
| MiraeAsset TIGER vs. Busan Industrial Co | MiraeAsset TIGER vs. Busan Ind | MiraeAsset TIGER vs. Mirae Asset Daewoo | MiraeAsset TIGER vs. Shinhan WTI Futures |
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 Stocks Directory module to find actively traded stocks across global markets.
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