Correlation Between PLAYWITH and Wonil Special
Can any of the company-specific risk be diversified away by investing in both PLAYWITH 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 PLAYWITH and Wonil Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYWITH and Wonil Special Steel, you can compare the effects of market volatilities on PLAYWITH 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 PLAYWITH with a short position of Wonil Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYWITH and Wonil Special.
Diversification Opportunities for PLAYWITH and Wonil Special
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PLAYWITH and Wonil is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding PLAYWITH 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 PLAYWITH 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 PLAYWITH 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 PLAYWITH i.e., PLAYWITH and Wonil Special go up and down completely randomly.
Pair Corralation between PLAYWITH and Wonil Special
Assuming the 90 days trading horizon PLAYWITH is expected to under-perform the Wonil Special. In addition to that, PLAYWITH is 2.86 times more volatile than Wonil Special Steel. It trades about -0.06 of its total potential returns per unit of risk. Wonil Special Steel is currently generating about -0.06 per unit of volatility. If you would invest 870,776 in Wonil Special Steel on September 14, 2024 and sell it today you would lose (158,776) from holding Wonil Special Steel or give up 18.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYWITH vs. Wonil Special Steel
Performance |
| Timeline |
| PLAYWITH |
| Wonil Special Steel |
PLAYWITH and Wonil Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYWITH and Wonil Special
The main advantage of trading using opposite PLAYWITH and Wonil Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYWITH 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.| PLAYWITH vs. YG Entertainment | PLAYWITH vs. JYP Entertainment | PLAYWITH vs. Cube Entertainment | PLAYWITH vs. FNC Entertainment Co |
| 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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