Correlation Between Woori Technology and NH Investment
Can any of the company-specific risk be diversified away by investing in both Woori Technology and NH Investment 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 NH Investment 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 NH Investment Securities, you can compare the effects of market volatilities on Woori Technology and NH Investment 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 NH Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and NH Investment.
Diversification Opportunities for Woori Technology and NH Investment
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and 005940 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and NH Investment Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Investment Securities 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 NH Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Investment Securities has no effect on the direction of Woori Technology i.e., Woori Technology and NH Investment go up and down completely randomly.
Pair Corralation between Woori Technology and NH Investment
Assuming the 90 days trading horizon Woori Technology Investment is expected to generate 3.55 times more return on investment than NH Investment. However, Woori Technology is 3.55 times more volatile than NH Investment Securities. It trades about 0.1 of its potential returns per unit of risk. NH Investment Securities is currently generating about 0.09 per unit of risk. If you would invest 304,000 in Woori Technology Investment on August 25, 2024 and sell it today you would earn a total of 658,000 from holding Woori Technology Investment or generate 216.45% 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. NH Investment Securities
Performance |
| Timeline |
| Woori Technology Inv |
| NH Investment Securities |
Woori Technology and NH Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and NH Investment
The main advantage of trading using opposite Woori Technology and NH Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, NH Investment 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 NH Investment will offset losses from the drop in NH Investment's long position.| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV Co |
| NH Investment vs. AptaBio Therapeutics | NH Investment vs. Daewoo SBI SPAC | NH Investment vs. Dream Security co | NH Investment vs. Microfriend |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |