Correlation Between Daishin Information and Woori Technology
Can any of the company-specific risk be diversified away by investing in both Daishin Information and Woori Technology 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 Daishin Information and Woori Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Information Communications and Woori Technology Investment, you can compare the effects of market volatilities on Daishin Information and Woori Technology 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 Daishin Information with a short position of Woori Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Woori Technology.
Diversification Opportunities for Daishin Information and Woori Technology
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Daishin and Woori is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat and Woori Technology Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woori Technology Inv and Daishin Information 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 Daishin Information Communications are associated (or correlated) with Woori Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woori Technology Inv has no effect on the direction of Daishin Information i.e., Daishin Information and Woori Technology go up and down completely randomly.
Pair Corralation between Daishin Information and Woori Technology
Assuming the 90 days trading horizon Daishin Information is expected to generate 29.45 times less return on investment than Woori Technology. But when comparing it to its historical volatility, Daishin Information Communications is 2.02 times less risky than Woori Technology. It trades about 0.0 of its potential returns per unit of risk. Woori Technology Investment is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 476,000 in Woori Technology Investment on November 19, 2024 and sell it today you would earn a total of 211,000 from holding Woori Technology Investment or generate 44.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Woori Technology Investment
Performance |
| Timeline |
| Daishin Information |
| Woori Technology Inv |
Daishin Information and Woori Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Woori Technology
The main advantage of trading using opposite Daishin Information and Woori Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information position performs unexpectedly, Woori Technology 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 Woori Technology will offset losses from the drop in Woori Technology's long position.| Daishin Information vs. Samyung Trading Co | Daishin Information vs. SCI Information Service | Daishin Information vs. SV Investment | Daishin Information vs. NH Investment Securities |
| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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