Correlation Between Woori Technology and Sungchang Autotech
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Sungchang Autotech 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 Sungchang Autotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woori Technology and Sungchang Autotech Co, you can compare the effects of market volatilities on Woori Technology and Sungchang Autotech 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 Sungchang Autotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Sungchang Autotech.
Diversification Opportunities for Woori Technology and Sungchang Autotech
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Woori and Sungchang is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology and Sungchang Autotech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sungchang Autotech 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 Sungchang Autotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sungchang Autotech has no effect on the direction of Woori Technology i.e., Woori Technology and Sungchang Autotech go up and down completely randomly.
Pair Corralation between Woori Technology and Sungchang Autotech
Assuming the 90 days trading horizon Woori Technology is expected to generate 1.45 times more return on investment than Sungchang Autotech. However, Woori Technology is 1.45 times more volatile than Sungchang Autotech Co. It trades about 0.01 of its potential returns per unit of risk. Sungchang Autotech Co is currently generating about -0.06 per unit of risk. If you would invest 228,500 in Woori Technology on September 3, 2024 and sell it today you would lose (6,000) from holding Woori Technology or give up 2.63% 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. Sungchang Autotech Co
Performance |
| Timeline |
| Woori Technology |
| Sungchang Autotech |
Woori Technology and Sungchang Autotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Sungchang Autotech
The main advantage of trading using opposite Woori Technology and Sungchang Autotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Sungchang Autotech 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 Sungchang Autotech will offset losses from the drop in Sungchang Autotech's long position.| Woori Technology vs. GS Retail Co | Woori Technology vs. Neungyule Education | Woori Technology vs. KMH Hitech Co | Woori Technology vs. Sungchang Autotech Co |
| Sungchang Autotech vs. Korea Real Estate | Sungchang Autotech vs. Busan Industrial Co | Sungchang Autotech vs. UNISEM Co | Sungchang Autotech vs. RPBio Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |