Correlation Between Wonil Special and Pureun Mutual
Can any of the company-specific risk be diversified away by investing in both Wonil Special and Pureun Mutual 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 Wonil Special and Pureun Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wonil Special Steel and Pureun Mutual Savings, you can compare the effects of market volatilities on Wonil Special and Pureun Mutual 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 Wonil Special with a short position of Pureun Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonil Special and Pureun Mutual.
Diversification Opportunities for Wonil Special and Pureun Mutual
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wonil and Pureun is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Wonil Special Steel and Pureun Mutual Savings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pureun Mutual Savings and Wonil Special 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 Wonil Special Steel are associated (or correlated) with Pureun Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pureun Mutual Savings has no effect on the direction of Wonil Special i.e., Wonil Special and Pureun Mutual go up and down completely randomly.
Pair Corralation between Wonil Special and Pureun Mutual
Assuming the 90 days trading horizon Wonil Special Steel is expected to under-perform the Pureun Mutual. In addition to that, Wonil Special is 1.52 times more volatile than Pureun Mutual Savings. It trades about -0.23 of its total potential returns per unit of risk. Pureun Mutual Savings is currently generating about -0.17 per unit of volatility. If you would invest 828,000 in Pureun Mutual Savings on November 22, 2024 and sell it today you would lose (11,000) from holding Pureun Mutual Savings or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonil Special Steel vs. Pureun Mutual Savings
Performance |
| Timeline |
| Wonil Special Steel |
| Pureun Mutual Savings |
Wonil Special and Pureun Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonil Special and Pureun Mutual
The main advantage of trading using opposite Wonil Special and Pureun Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonil Special position performs unexpectedly, Pureun Mutual 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 Pureun Mutual will offset losses from the drop in Pureun Mutual's long position.| Wonil Special vs. EV Advanced Material | Wonil Special vs. Kyeryong Construction Industrial | Wonil Special vs. Hyosung Advanced Materials | Wonil Special vs. PJ Metal Co |
| Pureun Mutual vs. Daol Investment Securities | Pureun Mutual vs. LG Household Healthcare | Pureun Mutual vs. Sangsin Energy Display | Pureun Mutual vs. Moadata 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |