Correlation Between MiraeAsset TIGER and Shinhan Copper
Can any of the company-specific risk be diversified away by investing in both MiraeAsset TIGER and Shinhan Copper 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 MiraeAsset TIGER and Shinhan Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MiraeAsset TIGER China and Shinhan Copper Futures, you can compare the effects of market volatilities on MiraeAsset TIGER and Shinhan Copper 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 MiraeAsset TIGER with a short position of Shinhan Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of MiraeAsset TIGER and Shinhan Copper.
Diversification Opportunities for MiraeAsset TIGER and Shinhan Copper
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MiraeAsset and Shinhan is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MiraeAsset TIGER China and Shinhan Copper Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shinhan Copper Futures and MiraeAsset TIGER 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 MiraeAsset TIGER China are associated (or correlated) with Shinhan Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shinhan Copper Futures has no effect on the direction of MiraeAsset TIGER i.e., MiraeAsset TIGER and Shinhan Copper go up and down completely randomly.
Pair Corralation between MiraeAsset TIGER and Shinhan Copper
Assuming the 90 days trading horizon MiraeAsset TIGER China is expected to generate 1.43 times more return on investment than Shinhan Copper. However, MiraeAsset TIGER is 1.43 times more volatile than Shinhan Copper Futures. It trades about 0.24 of its potential returns per unit of risk. Shinhan Copper Futures is currently generating about 0.24 per unit of risk. If you would invest 716,500 in MiraeAsset TIGER China on November 3, 2024 and sell it today you would earn a total of 68,000 from holding MiraeAsset TIGER China or generate 9.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MiraeAsset TIGER China vs. Shinhan Copper Futures
Performance |
| Timeline |
| MiraeAsset TIGER China |
| Shinhan Copper Futures |
MiraeAsset TIGER and Shinhan Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MiraeAsset TIGER and Shinhan Copper
The main advantage of trading using opposite MiraeAsset TIGER and Shinhan Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MiraeAsset TIGER position performs unexpectedly, Shinhan Copper 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 Shinhan Copper will offset losses from the drop in Shinhan Copper's long position.| MiraeAsset TIGER vs. 453950 | MiraeAsset TIGER vs. Busan Industrial Co | MiraeAsset TIGER vs. Busan Ind | MiraeAsset TIGER vs. Mirae Asset Daewoo |
| Shinhan Copper vs. 453950 | Shinhan Copper vs. Busan Industrial Co | Shinhan Copper vs. Busan Ind | Shinhan Copper vs. Mirae Asset Daewoo |
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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