Correlation Between Anam Electronics and Wonil Special
Can any of the company-specific risk be diversified away by investing in both Anam Electronics and Wonil Special 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 Anam Electronics and Wonil Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anam Electronics Co and Wonil Special Steel, you can compare the effects of market volatilities on Anam Electronics and Wonil Special 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 Anam Electronics with a short position of Wonil Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anam Electronics and Wonil Special.
Diversification Opportunities for Anam Electronics and Wonil Special
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anam and Wonil is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Anam Electronics Co and Wonil Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonil Special Steel and Anam Electronics 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 Anam Electronics Co are associated (or correlated) with Wonil Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonil Special Steel has no effect on the direction of Anam Electronics i.e., Anam Electronics and Wonil Special go up and down completely randomly.
Pair Corralation between Anam Electronics and Wonil Special
Assuming the 90 days trading horizon Anam Electronics is expected to generate 477.14 times less return on investment than Wonil Special. In addition to that, Anam Electronics is 2.54 times more volatile than Wonil Special Steel. It trades about 0.0 of its total potential returns per unit of risk. Wonil Special Steel is currently generating about 0.44 per unit of volatility. If you would invest 690,630 in Wonil Special Steel on October 15, 2024 and sell it today you would earn a total of 42,370 from holding Wonil Special Steel or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anam Electronics Co vs. Wonil Special Steel
Performance |
| Timeline |
| Anam Electronics |
| Wonil Special Steel |
Anam Electronics and Wonil Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anam Electronics and Wonil Special
The main advantage of trading using opposite Anam Electronics and Wonil Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anam Electronics position performs unexpectedly, Wonil Special 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 Wonil Special will offset losses from the drop in Wonil Special's long position.| Anam Electronics vs. Aprogen Healthcare Games | Anam Electronics vs. RFTech Co | Anam Electronics vs. A Tech Solution Co | Anam Electronics vs. Tway Air Co |
| Wonil Special vs. Dongbang Transport Logistics | Wonil Special vs. BIT Computer Co | Wonil Special vs. Koryo Credit Information | Wonil Special vs. SCI Information Service |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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