Correlation Between Inzi Display and Wonbang Tech
Can any of the company-specific risk be diversified away by investing in both Inzi Display and Wonbang Tech 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 Inzi Display and Wonbang Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inzi Display CoLtd and Wonbang Tech Co, you can compare the effects of market volatilities on Inzi Display and Wonbang Tech 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 Inzi Display with a short position of Wonbang Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inzi Display and Wonbang Tech.
Diversification Opportunities for Inzi Display and Wonbang Tech
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inzi and Wonbang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Inzi Display CoLtd and Wonbang Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonbang Tech and Inzi Display 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 Inzi Display CoLtd are associated (or correlated) with Wonbang Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonbang Tech has no effect on the direction of Inzi Display i.e., Inzi Display and Wonbang Tech go up and down completely randomly.
Pair Corralation between Inzi Display and Wonbang Tech
Assuming the 90 days trading horizon Inzi Display CoLtd is expected to generate 0.5 times more return on investment than Wonbang Tech. However, Inzi Display CoLtd is 2.02 times less risky than Wonbang Tech. It trades about -0.17 of its potential returns per unit of risk. Wonbang Tech Co is currently generating about -0.21 per unit of risk. If you would invest 160,600 in Inzi Display CoLtd on September 3, 2024 and sell it today you would lose (21,500) from holding Inzi Display CoLtd or give up 13.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inzi Display CoLtd vs. Wonbang Tech Co
Performance |
| Timeline |
| Inzi Display CoLtd |
| Wonbang Tech |
Inzi Display and Wonbang Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inzi Display and Wonbang Tech
The main advantage of trading using opposite Inzi Display and Wonbang Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inzi Display position performs unexpectedly, Wonbang Tech 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 Wonbang Tech will offset losses from the drop in Wonbang Tech's long position.| Inzi Display vs. Dongsin Engineering Construction | Inzi Display vs. Doosan Fuel Cell | Inzi Display vs. Daishin Balance 1 | Inzi Display vs. Total Soft Bank |
| Wonbang Tech vs. Dongnam Chemical Co | Wonbang Tech vs. CKH Food Health | Wonbang Tech vs. Hyundai Green Food | Wonbang Tech vs. Youngbo Chemical 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |