Correlation Between Woori Technology and I Components
Can any of the company-specific risk be diversified away by investing in both Woori Technology and I Components 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 I Components into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woori Technology and i Components Co, you can compare the effects of market volatilities on Woori Technology and I Components 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 I Components. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and I Components.
Diversification Opportunities for Woori Technology and I Components
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Woori and 059100 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology and i Components Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i Components 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 I Components. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i Components has no effect on the direction of Woori Technology i.e., Woori Technology and I Components go up and down completely randomly.
Pair Corralation between Woori Technology and I Components
Assuming the 90 days trading horizon Woori Technology is expected to generate 1.26 times more return on investment than I Components. However, Woori Technology is 1.26 times more volatile than i Components Co. It trades about 0.03 of its potential returns per unit of risk. i Components Co is currently generating about -0.01 per unit of risk. If you would invest 147,900 in Woori Technology on October 14, 2024 and sell it today you would earn a total of 35,700 from holding Woori Technology or generate 24.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology vs. i Components Co
Performance |
| Timeline |
| Woori Technology |
| i Components |
Woori Technology and I Components Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and I Components
The main advantage of trading using opposite Woori Technology and I Components positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, I Components 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 I Components will offset losses from the drop in I Components' long position.| Woori Technology vs. Youl Chon Chemical | Woori Technology vs. Daelim Trading Co | Woori Technology vs. Atinum Investment Co | Woori Technology vs. Woori Technology Investment |
| I Components vs. FNSTech Co | I Components vs. PH Tech Co | I Components vs. PLAYWITH | I Components vs. Woori Technology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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