Correlation Between Woori Technology and Sam A
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Sam A 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 Woori Technology and Sam A into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woori Technology and Sam A Pharm Co, you can compare the effects of market volatilities on Woori Technology and Sam A 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 Woori Technology with a short position of Sam A. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Sam A.
Diversification Opportunities for Woori Technology and Sam A
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Woori and Sam is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology and Sam A Pharm Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sam A Pharm and Woori Technology 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 Woori Technology are associated (or correlated) with Sam A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sam A Pharm has no effect on the direction of Woori Technology i.e., Woori Technology and Sam A go up and down completely randomly.
Pair Corralation between Woori Technology and Sam A
Assuming the 90 days trading horizon Woori Technology is expected to generate 1.71 times more return on investment than Sam A. However, Woori Technology is 1.71 times more volatile than Sam A Pharm Co. It trades about 0.02 of its potential returns per unit of risk. Sam A Pharm Co is currently generating about -0.61 per unit of risk. If you would invest 219,000 in Woori Technology on September 4, 2024 and sell it today you would earn a total of 1,000.00 from holding Woori Technology or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology vs. Sam A Pharm Co
Performance |
| Timeline |
| Woori Technology |
| Sam A Pharm |
Woori Technology and Sam A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Sam A
The main advantage of trading using opposite Woori Technology and Sam A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Sam A 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 Sam A will offset losses from the drop in Sam A's long position.| Woori Technology vs. SBI Investment KOREA | Woori Technology vs. Hyosung Advanced Materials | Woori Technology vs. Daejoo Electronic Materials | Woori Technology vs. National Plastic Co |
| Sam A vs. Taeyang Metal Industrial | Sam A vs. Youngsin Metal Industrial | Sam A vs. Duksan Hi Metal | Sam A vs. Shinhan Inverse Copper |
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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