Correlation Between GS Engineering and Mirai Semiconductors

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Can any of the company-specific risk be diversified away by investing in both GS Engineering and Mirai Semiconductors 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 GS Engineering and Mirai Semiconductors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GS Engineering Construction and Mirai Semiconductors Co, you can compare the effects of market volatilities on GS Engineering and Mirai Semiconductors 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 GS Engineering with a short position of Mirai Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of GS Engineering and Mirai Semiconductors.

Diversification Opportunities for GS Engineering and Mirai Semiconductors

006360MiraiDiversified Away006360MiraiDiversified Away100%
0.03
  Correlation Coefficient

Significant diversification

The 3 months correlation between 006360 and Mirai is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding GS Engineering Construction and Mirai Semiconductors Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirai Semiconductors and GS Engineering 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 GS Engineering Construction are associated (or correlated) with Mirai Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirai Semiconductors has no effect on the direction of GS Engineering i.e., GS Engineering and Mirai Semiconductors go up and down completely randomly.

Pair Corralation between GS Engineering and Mirai Semiconductors

Assuming the 90 days trading horizon GS Engineering Construction is expected to generate 0.61 times more return on investment than Mirai Semiconductors. However, GS Engineering Construction is 1.64 times less risky than Mirai Semiconductors. It trades about -0.01 of its potential returns per unit of risk. Mirai Semiconductors Co is currently generating about -0.03 per unit of risk. If you would invest  1,810,000  in GS Engineering Construction on October 25, 2024 and sell it today you would lose (63,000) from holding GS Engineering Construction or give up 3.48% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

GS Engineering Construction  vs.  Mirai Semiconductors Co

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -40-30-20-100
JavaScript chart by amCharts 3.21.15006360 254490
       Timeline  
GS Engineering Const 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GS Engineering Construction has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, GS Engineering is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan17,00017,50018,00018,50019,00019,50020,000
Mirai Semiconductors 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mirai Semiconductors Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan10,00011,00012,00013,00014,00015,00016,000

GS Engineering and Mirai Semiconductors Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.82-2.86-1.9-0.94-0.01560.921.862.793.73 0.030.040.050.060.07
JavaScript chart by amCharts 3.21.15006360 254490
       Returns  

Pair Trading with GS Engineering and Mirai Semiconductors

The main advantage of trading using opposite GS Engineering and Mirai Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GS Engineering position performs unexpectedly, Mirai Semiconductors 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 Mirai Semiconductors will offset losses from the drop in Mirai Semiconductors' long position.
The idea behind GS Engineering Construction and Mirai Semiconductors Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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