Correlation Between NOVATECH and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both NOVATECH 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 NOVATECH and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NOVATECH Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on NOVATECH 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 NOVATECH with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of NOVATECH and Mirae Asset.
Diversification Opportunities for NOVATECH and Mirae Asset
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NOVATECH and Mirae is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NOVATECH 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 NOVATECH 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 NOVATECH 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 NOVATECH i.e., NOVATECH and Mirae Asset go up and down completely randomly.
Pair Corralation between NOVATECH and Mirae Asset
If you would invest 699,796 in Mirae Asset Daewoo on November 2, 2024 and sell it today you would earn a total of 143,204 from holding Mirae Asset Daewoo or generate 20.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.21% |
| Values | Daily Returns |
NOVATECH Co vs. Mirae Asset Daewoo
Performance |
| Timeline |
| NOVATECH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Mirae Asset Daewoo |
NOVATECH and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NOVATECH and Mirae Asset
The main advantage of trading using opposite NOVATECH and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NOVATECH 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.| NOVATECH vs. Miwon Chemicals Co | NOVATECH vs. Bosung Power Technology | NOVATECH vs. Clean Science co | NOVATECH vs. Kukdong Oil Chemicals |
| Mirae Asset vs. Ssangyong Information Communication | Mirae Asset vs. Seoul Semiconductor Co | Mirae Asset vs. Sangsangin Investment Securities | Mirae Asset vs. Korea Computer |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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