Correlation Between Hyosung Advanced and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Hyosung Advanced 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 Hyosung Advanced and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyosung Advanced Materials and Mirae Asset Daewoo, you can compare the effects of market volatilities on Hyosung Advanced 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 Hyosung Advanced with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyosung Advanced and Mirae Asset.
Diversification Opportunities for Hyosung Advanced and Mirae Asset
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyosung and Mirae is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Hyosung Advanced Materials 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 Hyosung Advanced 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 Hyosung Advanced Materials 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 Hyosung Advanced i.e., Hyosung Advanced and Mirae Asset go up and down completely randomly.
Pair Corralation between Hyosung Advanced and Mirae Asset
Assuming the 90 days trading horizon Hyosung Advanced Materials is expected to under-perform the Mirae Asset. In addition to that, Hyosung Advanced is 1.35 times more volatile than Mirae Asset Daewoo. It trades about -0.05 of its total potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.01 per unit of volatility. If you would invest 407,363 in Mirae Asset Daewoo on October 13, 2024 and sell it today you would earn a total of 22,637 from holding Mirae Asset Daewoo or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hyosung Advanced Materials vs. Mirae Asset Daewoo
Performance |
| Timeline |
| Hyosung Advanced Mat |
| Mirae Asset Daewoo |
Hyosung Advanced and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyosung Advanced and Mirae Asset
The main advantage of trading using opposite Hyosung Advanced and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyosung Advanced 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.| Hyosung Advanced vs. LG Household Healthcare | Hyosung Advanced vs. SungMoon Electronics Co | Hyosung Advanced vs. Koryo Credit Information | Hyosung Advanced vs. Korea Information Engineering |
| Mirae Asset vs. EV Advanced Material | Mirae Asset vs. PI Advanced Materials | Mirae Asset vs. Hyundai Engineering Plastics | Mirae Asset vs. Hyosung Advanced Materials |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets |