Correlation Between Kosdaq Composite and Mirae Asset
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By analyzing existing cross correlation between Kosdaq Composite Index and Mirae Asset Daewoo, you can compare the effects of market volatilities on Kosdaq Composite 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 Kosdaq Composite with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kosdaq Composite and Mirae Asset.
Diversification Opportunities for Kosdaq Composite and Mirae Asset
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kosdaq and Mirae is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Kosdaq Composite Index 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 Kosdaq Composite 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 Kosdaq Composite Index 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 Kosdaq Composite i.e., Kosdaq Composite and Mirae Asset go up and down completely randomly.
Pair Corralation between Kosdaq Composite and Mirae Asset
Assuming the 90 days trading horizon Kosdaq Composite is expected to generate 7.39 times less return on investment than Mirae Asset. In addition to that, Kosdaq Composite is 1.42 times more volatile than Mirae Asset Daewoo. It trades about 0.0 of its total potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.03 per unit of volatility. If you would invest 342,947 in Mirae Asset Daewoo on August 29, 2024 and sell it today you would earn a total of 55,053 from holding Mirae Asset Daewoo or generate 16.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kosdaq Composite Index vs. Mirae Asset Daewoo
Performance |
| Timeline |
Kosdaq Composite and Mirae Asset Volatility Contrast
Predicted Return Density |
| Returns |
Kosdaq Composite Index
Pair trading matchups for Kosdaq Composite
Mirae Asset Daewoo
Pair trading matchups for Mirae Asset
Pair Trading with Kosdaq Composite and Mirae Asset
The main advantage of trading using opposite Kosdaq Composite and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kosdaq Composite 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.| Kosdaq Composite vs. Korea Air Svc | Kosdaq Composite vs. Mobileleader CoLtd | Kosdaq Composite vs. Ssangyong Information Communication | Kosdaq Composite vs. TOPMATERIAL LTD |
| Mirae Asset vs. InnoTherapy | Mirae Asset vs. Aprogen Healthcare Games | Mirae Asset vs. Pan Entertainment Co | Mirae Asset vs. GS Retail 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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