Correlation Between SKONEC Entertainment and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both SKONEC Entertainment 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 SKONEC Entertainment and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SKONEC Entertainment Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on SKONEC Entertainment 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 SKONEC Entertainment with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of SKONEC Entertainment and Mirae Asset.
Diversification Opportunities for SKONEC Entertainment and Mirae Asset
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between SKONEC and Mirae is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding SKONEC Entertainment Co 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 SKONEC Entertainment 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 SKONEC Entertainment Co 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 SKONEC Entertainment i.e., SKONEC Entertainment and Mirae Asset go up and down completely randomly.
Pair Corralation between SKONEC Entertainment and Mirae Asset
Assuming the 90 days trading horizon SKONEC Entertainment Co is expected to under-perform the Mirae Asset. In addition to that, SKONEC Entertainment is 1.66 times more volatile than Mirae Asset Daewoo. It trades about -0.07 of its total potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.04 per unit of volatility. If you would invest 731,204 in Mirae Asset Daewoo on September 12, 2024 and sell it today you would earn a total of 132,796 from holding Mirae Asset Daewoo or generate 18.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SKONEC Entertainment Co vs. Mirae Asset Daewoo
Performance |
| Timeline |
| SKONEC Entertainment |
| Mirae Asset Daewoo |
SKONEC Entertainment and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SKONEC Entertainment and Mirae Asset
The main advantage of trading using opposite SKONEC Entertainment and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SKONEC Entertainment 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.| SKONEC Entertainment vs. Kakao Games Corp | SKONEC Entertainment vs. Devsisters corporation | SKONEC Entertainment vs. Konan Technology | SKONEC Entertainment vs. Nice Information Telecommunication |
| Mirae Asset vs. SKONEC Entertainment Co | Mirae Asset vs. FNC Entertainment Co | Mirae Asset vs. MEDIANA CoLtd | Mirae Asset vs. Cots Technology Co |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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