Correlation Between Wonil Special and ED
Can any of the company-specific risk be diversified away by investing in both Wonil Special and ED 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 ED 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 ED Co, you can compare the effects of market volatilities on Wonil Special and ED 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 ED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonil Special and ED.
Diversification Opportunities for Wonil Special and ED
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wonil and ED is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wonil Special Steel and ED Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ED Co 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 ED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ED Co has no effect on the direction of Wonil Special i.e., Wonil Special and ED go up and down completely randomly.
Pair Corralation between Wonil Special and ED
If you would invest 653,771 in Wonil Special Steel on October 9, 2024 and sell it today you would earn a total of 73,229 from holding Wonil Special Steel or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Wonil Special Steel vs. ED Co
Performance |
| Timeline |
| Wonil Special Steel |
| ED Co |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wonil Special and ED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonil Special and ED
The main advantage of trading using opposite Wonil Special and ED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonil Special position performs unexpectedly, ED 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 ED will offset losses from the drop in ED's long position.| Wonil Special vs. LG Chemicals | Wonil Special vs. POSCO Holdings | Wonil Special vs. Hanwha Solutions | Wonil Special vs. Lotte Chemical Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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