Correlation Between InnoTherapy and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both InnoTherapy 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 InnoTherapy and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InnoTherapy and Mirae Asset Daewoo, you can compare the effects of market volatilities on InnoTherapy 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 InnoTherapy with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of InnoTherapy and Mirae Asset.
Diversification Opportunities for InnoTherapy and Mirae Asset
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between InnoTherapy and Mirae is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding InnoTherapy 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 InnoTherapy 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 InnoTherapy 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 InnoTherapy i.e., InnoTherapy and Mirae Asset go up and down completely randomly.
Pair Corralation between InnoTherapy and Mirae Asset
Assuming the 90 days trading horizon InnoTherapy is expected to generate 2.35 times more return on investment than Mirae Asset. However, InnoTherapy is 2.35 times more volatile than Mirae Asset Daewoo. It trades about 0.02 of its potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.04 per unit of risk. If you would invest 827,000 in InnoTherapy on November 27, 2024 and sell it today you would earn a total of 99,000 from holding InnoTherapy or generate 11.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InnoTherapy vs. Mirae Asset Daewoo
Performance |
| Timeline |
| InnoTherapy |
| Mirae Asset Daewoo |
InnoTherapy and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InnoTherapy and Mirae Asset
The main advantage of trading using opposite InnoTherapy and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InnoTherapy 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.| InnoTherapy vs. GAMEVIL | InnoTherapy vs. Hankukpackage Co | InnoTherapy vs. Hannong Chemicals | InnoTherapy vs. Netmarble Games Corp |
| Mirae Asset vs. Solus Advanced Materials | Mirae Asset vs. Lake Materials Co | Mirae Asset vs. Hankukpackage Co | Mirae Asset vs. Kolon Plastics |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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