Correlation Between Woori Technology and Incar Financial
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Incar Financial 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 Incar Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woori Technology and Incar Financial Service, you can compare the effects of market volatilities on Woori Technology and Incar Financial 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 Incar Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Incar Financial.
Diversification Opportunities for Woori Technology and Incar Financial
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Woori and Incar is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology and Incar Financial Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incar Financial Service 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 Incar Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incar Financial Service has no effect on the direction of Woori Technology i.e., Woori Technology and Incar Financial go up and down completely randomly.
Pair Corralation between Woori Technology and Incar Financial
Assuming the 90 days trading horizon Woori Technology is expected to generate 0.97 times more return on investment than Incar Financial. However, Woori Technology is 1.03 times less risky than Incar Financial. It trades about 0.27 of its potential returns per unit of risk. Incar Financial Service is currently generating about 0.07 per unit of risk. If you would invest 177,800 in Woori Technology on November 8, 2024 and sell it today you would earn a total of 24,700 from holding Woori Technology or generate 13.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology vs. Incar Financial Service
Performance |
| Timeline |
| Woori Technology |
| Incar Financial Service |
Woori Technology and Incar Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Incar Financial
The main advantage of trading using opposite Woori Technology and Incar Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Incar Financial 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 Incar Financial will offset losses from the drop in Incar Financial's long position.| Woori Technology vs. Samsung Electronics Co | Woori Technology vs. Samsung Electronics Co | Woori Technology vs. Hyundai Motor Co | Woori Technology vs. Hyundai Motor |
| Incar Financial vs. Lotte Non Life Insurance | Incar Financial vs. Hironic Co | Incar Financial vs. Samsung Life Insurance | Incar Financial vs. Daechang Steel 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |