Correlation Between Mirai Semiconductors and GS Engineering
Can any of the company-specific risk be diversified away by investing in both Mirai Semiconductors and GS Engineering 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 Mirai Semiconductors and GS Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirai Semiconductors Co and GS Engineering Construction, you can compare the effects of market volatilities on Mirai Semiconductors and GS Engineering 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 Mirai Semiconductors with a short position of GS Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirai Semiconductors and GS Engineering.
Diversification Opportunities for Mirai Semiconductors and GS Engineering
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirai and 006360 is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Mirai Semiconductors Co and GS Engineering Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GS Engineering Const and Mirai Semiconductors 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 Mirai Semiconductors Co are associated (or correlated) with GS Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GS Engineering Const has no effect on the direction of Mirai Semiconductors i.e., Mirai Semiconductors and GS Engineering go up and down completely randomly.
Pair Corralation between Mirai Semiconductors and GS Engineering
Assuming the 90 days trading horizon Mirai Semiconductors Co is expected to under-perform the GS Engineering. In addition to that, Mirai Semiconductors is 1.36 times more volatile than GS Engineering Construction. It trades about -0.14 of its total potential returns per unit of risk. GS Engineering Construction is currently generating about -0.17 per unit of volatility. If you would invest 1,960,000 in GS Engineering Construction on September 29, 2024 and sell it today you would lose (208,000) from holding GS Engineering Construction or give up 10.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirai Semiconductors Co vs. GS Engineering Construction
Performance |
| Timeline |
| Mirai Semiconductors |
| GS Engineering Const |
Mirai Semiconductors and GS Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirai Semiconductors and GS Engineering
The main advantage of trading using opposite Mirai Semiconductors and GS Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirai Semiconductors position performs unexpectedly, GS Engineering 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 GS Engineering will offset losses from the drop in GS Engineering's long position.| Mirai Semiconductors vs. Samsung Electronics Co | Mirai Semiconductors vs. Samsung Electronics Co | Mirai Semiconductors vs. LG Energy Solution | Mirai Semiconductors vs. SK Hynix |
| GS Engineering vs. AptaBio Therapeutics | GS Engineering vs. Wonbang Tech Co | GS Engineering vs. Busan Industrial Co | GS Engineering vs. Busan Ind |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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