Correlation Between Woori Technology and Hansol Chemical
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Hansol Chemical 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 Hansol Chemical 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 Hansol Chemical Co, you can compare the effects of market volatilities on Woori Technology and Hansol Chemical 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 Hansol Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Hansol Chemical.
Diversification Opportunities for Woori Technology and Hansol Chemical
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Woori and Hansol is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and Hansol Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hansol Chemical 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 Hansol Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hansol Chemical has no effect on the direction of Woori Technology i.e., Woori Technology and Hansol Chemical go up and down completely randomly.
Pair Corralation between Woori Technology and Hansol Chemical
Assuming the 90 days trading horizon Woori Technology Investment is expected to under-perform the Hansol Chemical. In addition to that, Woori Technology is 1.46 times more volatile than Hansol Chemical Co. It trades about -0.02 of its total potential returns per unit of risk. Hansol Chemical Co is currently generating about 0.0 per unit of volatility. If you would invest 10,350,000 in Hansol Chemical Co on October 12, 2024 and sell it today you would lose (90,000) from holding Hansol Chemical Co or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology Investment vs. Hansol Chemical Co
Performance |
| Timeline |
| Woori Technology Inv |
| Hansol Chemical |
Woori Technology and Hansol Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Hansol Chemical
The main advantage of trading using opposite Woori Technology and Hansol Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Hansol Chemical 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 Hansol Chemical will offset losses from the drop in Hansol Chemical's long position.| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV Co |
| Hansol Chemical vs. Lake Materials Co | Hansol Chemical vs. Woori Technology Investment | Hansol Chemical vs. WONIK Materials CoLtd | Hansol Chemical vs. Atinum Investment 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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