Correlation Between Starbucks and Mirae Asset
Can any of the company-specific risk be diversified away by investing in both Starbucks 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 Starbucks and Mirae Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Starbucks and Mirae Asset Daewoo, you can compare the effects of market volatilities on Starbucks 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 Starbucks with a short position of Mirae Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starbucks and Mirae Asset.
Diversification Opportunities for Starbucks and Mirae Asset
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Starbucks and Mirae is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Starbucks 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 Starbucks 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 Starbucks 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 Starbucks i.e., Starbucks and Mirae Asset go up and down completely randomly.
Pair Corralation between Starbucks and Mirae Asset
Assuming the 90 days trading horizon Starbucks is expected to generate 2.28 times less return on investment than Mirae Asset. But when comparing it to its historical volatility, Starbucks is 2.42 times less risky than Mirae Asset. It trades about 0.03 of its potential returns per unit of risk. Mirae Asset Daewoo is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 427,000 in Mirae Asset Daewoo on October 25, 2024 and sell it today you would earn a total of 11,000 from holding Mirae Asset Daewoo or generate 2.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Starbucks vs. Mirae Asset Daewoo
Performance |
Timeline |
Starbucks |
Mirae Asset Daewoo |
Starbucks and Mirae Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Starbucks and Mirae Asset
The main advantage of trading using opposite Starbucks and Mirae Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starbucks 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.Starbucks vs. Ameriprise Financial | Starbucks vs. Verizon Communications | Starbucks vs. The Bank of | Starbucks vs. Monster Beverage Corp |
Mirae Asset vs. Solus Advanced Materials | Mirae Asset vs. Narae Nanotech Corp | Mirae Asset vs. Orbitech Co | Mirae Asset vs. Lake Materials 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |