Correlation Between InfoBank and Wonil Special
Can any of the company-specific risk be diversified away by investing in both InfoBank and Wonil Special 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 InfoBank and Wonil Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InfoBank and Wonil Special Steel, you can compare the effects of market volatilities on InfoBank and Wonil Special 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 InfoBank with a short position of Wonil Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfoBank and Wonil Special.
Diversification Opportunities for InfoBank and Wonil Special
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between InfoBank and Wonil is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding InfoBank and Wonil Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonil Special Steel and InfoBank 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 InfoBank are associated (or correlated) with Wonil Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonil Special Steel has no effect on the direction of InfoBank i.e., InfoBank and Wonil Special go up and down completely randomly.
Pair Corralation between InfoBank and Wonil Special
Assuming the 90 days trading horizon InfoBank is expected to under-perform the Wonil Special. In addition to that, InfoBank is 5.08 times more volatile than Wonil Special Steel. It trades about -0.04 of its total potential returns per unit of risk. Wonil Special Steel is currently generating about -0.06 per unit of volatility. If you would invest 724,000 in Wonil Special Steel on November 27, 2024 and sell it today you would lose (5,000) from holding Wonil Special Steel or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InfoBank vs. Wonil Special Steel
Performance |
| Timeline |
| InfoBank |
| Wonil Special Steel |
InfoBank and Wonil Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InfoBank and Wonil Special
The main advantage of trading using opposite InfoBank and Wonil Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfoBank position performs unexpectedly, Wonil Special 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 Wonil Special will offset losses from the drop in Wonil Special's long position.| InfoBank vs. Haesung Industrial Co | InfoBank vs. Hyunwoo Industrial Co | InfoBank vs. Daishin Information Communications | InfoBank vs. Jeong Moon Information |
| Wonil Special vs. Tuksu Engineering ConstructionLtd | Wonil Special vs. Dongbang Ship Machinery | Wonil Special vs. Shinhan Inverse Silver | Wonil Special vs. INSUN Environmental New |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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