Correlation Between Woori Technology and Sung Bo
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Sung Bo 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 Sung Bo 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 Sung Bo Chemicals, you can compare the effects of market volatilities on Woori Technology and Sung Bo 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 Sung Bo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Sung Bo.
Diversification Opportunities for Woori Technology and Sung Bo
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Sung is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and Sung Bo Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sung Bo Chemicals 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 Sung Bo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sung Bo Chemicals has no effect on the direction of Woori Technology i.e., Woori Technology and Sung Bo go up and down completely randomly.
Pair Corralation between Woori Technology and Sung Bo
Assuming the 90 days trading horizon Woori Technology Investment is expected to generate 2.87 times more return on investment than Sung Bo. However, Woori Technology is 2.87 times more volatile than Sung Bo Chemicals. It trades about 0.04 of its potential returns per unit of risk. Sung Bo Chemicals is currently generating about 0.0 per unit of risk. If you would invest 563,000 in Woori Technology Investment on October 13, 2024 and sell it today you would earn a total of 213,000 from holding Woori Technology Investment or generate 37.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology Investment vs. Sung Bo Chemicals
Performance |
| Timeline |
| Woori Technology Inv |
| Sung Bo Chemicals |
Woori Technology and Sung Bo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Sung Bo
The main advantage of trading using opposite Woori Technology and Sung Bo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Sung Bo 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 Sung Bo will offset losses from the drop in Sung Bo's long position.| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV Co |
| Sung Bo vs. Daol Investment Securities | Sung Bo vs. Woori Technology Investment | Sung Bo vs. Youngsin Metal Industrial | Sung Bo vs. E Investment Development |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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