Correlation Between Lotte Non and Wysiwyg Studios
Can any of the company-specific risk be diversified away by investing in both Lotte Non and Wysiwyg Studios 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 Lotte Non and Wysiwyg Studios into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lotte Non Life Insurance and Wysiwyg Studios Co, you can compare the effects of market volatilities on Lotte Non and Wysiwyg Studios 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 Lotte Non with a short position of Wysiwyg Studios. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lotte Non and Wysiwyg Studios.
Diversification Opportunities for Lotte Non and Wysiwyg Studios
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lotte and Wysiwyg is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Lotte Non Life Insurance and Wysiwyg Studios Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wysiwyg Studios and Lotte Non 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 Lotte Non Life Insurance are associated (or correlated) with Wysiwyg Studios. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wysiwyg Studios has no effect on the direction of Lotte Non i.e., Lotte Non and Wysiwyg Studios go up and down completely randomly.
Pair Corralation between Lotte Non and Wysiwyg Studios
Assuming the 90 days trading horizon Lotte Non Life Insurance is expected to generate 0.8 times more return on investment than Wysiwyg Studios. However, Lotte Non Life Insurance is 1.25 times less risky than Wysiwyg Studios. It trades about -0.02 of its potential returns per unit of risk. Wysiwyg Studios Co is currently generating about -0.05 per unit of risk. If you would invest 268,500 in Lotte Non Life Insurance on November 3, 2024 and sell it today you would lose (72,400) from holding Lotte Non Life Insurance or give up 26.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Lotte Non Life Insurance vs. Wysiwyg Studios Co
Performance |
| Timeline |
| Lotte Non Life |
| Wysiwyg Studios |
Lotte Non and Wysiwyg Studios Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lotte Non and Wysiwyg Studios
The main advantage of trading using opposite Lotte Non and Wysiwyg Studios positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lotte Non position performs unexpectedly, Wysiwyg Studios 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 Wysiwyg Studios will offset losses from the drop in Wysiwyg Studios' long position.| Lotte Non vs. LG Household Healthcare | Lotte Non vs. Solution Advanced Technology | Lotte Non vs. Lion Chemtech Co | Lotte Non vs. LG Household Healthcare |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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