Correlation Between Wonbang Tech and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech 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 Wonbang Tech and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wonbang Tech Co and Mirae Asset Daewoo, you can compare the effects of market volatilities on Wonbang Tech 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 Wonbang Tech with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and Mirae Asset.
Diversification Opportunities for Wonbang Tech and Mirae Asset
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wonbang and Mirae is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech 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 Wonbang Tech 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 Wonbang Tech 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 Wonbang Tech i.e., Wonbang Tech and Mirae Asset go up and down completely randomly.
Pair Corralation between Wonbang Tech and Mirae Asset
Assuming the 90 days trading horizon Wonbang Tech Co is expected to under-perform the Mirae Asset. But the stock apears to be less risky and, when comparing its historical volatility, Wonbang Tech Co is 1.49 times less risky than Mirae Asset. The stock trades about -0.14 of its potential returns per unit of risk. The Mirae Asset Daewoo is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 422,000 in Mirae Asset Daewoo on September 24, 2024 and sell it today you would earn a total of 9,500 from holding Mirae Asset Daewoo or generate 2.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Wonbang Tech Co vs. Mirae Asset Daewoo
Performance |
Timeline |
Wonbang Tech |
Mirae Asset Daewoo |
Wonbang Tech and Mirae Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wonbang Tech and Mirae Asset
The main advantage of trading using opposite Wonbang Tech and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech 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.Wonbang Tech vs. Samsung Electronics Co | Wonbang Tech vs. Samsung Electronics Co | Wonbang Tech vs. LG Energy Solution | Wonbang Tech vs. SK Hynix |
Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. Samsung Electronics Co | Mirae Asset vs. LG Energy Solution | Mirae Asset vs. SK Hynix |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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