Correlation Between Woori Technology and Samji Electronics
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Samji Electronics 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 Samji Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woori Technology and Samji Electronics Co, you can compare the effects of market volatilities on Woori Technology and Samji Electronics 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 Samji Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Samji Electronics.
Diversification Opportunities for Woori Technology and Samji Electronics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Woori and Samji is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology and Samji Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samji Electronics 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 Samji Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samji Electronics has no effect on the direction of Woori Technology i.e., Woori Technology and Samji Electronics go up and down completely randomly.
Pair Corralation between Woori Technology and Samji Electronics
Assuming the 90 days trading horizon Woori Technology is expected to generate 3.46 times more return on investment than Samji Electronics. However, Woori Technology is 3.46 times more volatile than Samji Electronics Co. It trades about 0.01 of its potential returns per unit of risk. Samji Electronics Co is currently generating about -0.05 per unit of risk. If you would invest 235,000 in Woori Technology on August 29, 2024 and sell it today you would lose (500.00) from holding Woori Technology or give up 0.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology vs. Samji Electronics Co
Performance |
| Timeline |
| Woori Technology |
| Samji Electronics |
Woori Technology and Samji Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Samji Electronics
The main advantage of trading using opposite Woori Technology and Samji Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Samji Electronics 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 Samji Electronics will offset losses from the drop in Samji Electronics' long position.| Woori Technology vs. Korea Real Estate | Woori Technology vs. Korea Ratings Co | Woori Technology vs. IQuest Co | Woori Technology vs. Wonbang Tech Co |
| Samji Electronics vs. SFA Semicon Co | Samji Electronics vs. Seronics Co | Samji Electronics vs. COWELL FASHION CoLtd | Samji Electronics vs. Seohee Construction 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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