Correlation Between Woori Technology and Young Poong
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Young Poong 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 Young Poong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woori Technology Investment and Young Poong Corp, you can compare the effects of market volatilities on Woori Technology and Young Poong 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 Young Poong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Young Poong.
Diversification Opportunities for Woori Technology and Young Poong
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Woori and Young is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and Young Poong Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Poong Corp 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 Investment are associated (or correlated) with Young Poong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Poong Corp has no effect on the direction of Woori Technology i.e., Woori Technology and Young Poong go up and down completely randomly.
Pair Corralation between Woori Technology and Young Poong
Assuming the 90 days trading horizon Woori Technology Investment is expected to under-perform the Young Poong. In addition to that, Woori Technology is 2.7 times more volatile than Young Poong Corp. It trades about -0.12 of its total potential returns per unit of risk. Young Poong Corp is currently generating about 0.14 per unit of volatility. If you would invest 38,340,600 in Young Poong Corp on October 15, 2024 and sell it today you would earn a total of 1,359,400 from holding Young Poong Corp or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology Investment vs. Young Poong Corp
Performance |
| Timeline |
| Woori Technology Inv |
| Young Poong Corp |
Woori Technology and Young Poong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Young Poong
The main advantage of trading using opposite Woori Technology and Young Poong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Young Poong 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 Young Poong will offset losses from the drop in Young Poong's long position.| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV Co |
| Young Poong vs. Samyung Trading Co | Young Poong vs. Korea Investment Holdings | Young Poong vs. Woori Technology Investment | Young Poong vs. Worldex Industry Trading |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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