Correlation Between Woori Technology and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Atinum 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 Atinum 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 Atinum Investment Co, you can compare the effects of market volatilities on Woori Technology and Atinum 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 Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Atinum Investment.
Diversification Opportunities for Woori Technology and Atinum Investment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Woori and Atinum is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment 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 Atinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atinum Investment has no effect on the direction of Woori Technology i.e., Woori Technology and Atinum Investment go up and down completely randomly.
Pair Corralation between Woori Technology and Atinum Investment
Assuming the 90 days trading horizon Woori Technology Investment is expected to generate 1.69 times more return on investment than Atinum Investment. However, Woori Technology is 1.69 times more volatile than Atinum Investment Co. It trades about 0.15 of its potential returns per unit of risk. Atinum Investment Co is currently generating about 0.0 per unit of risk. If you would invest 739,000 in Woori Technology Investment on August 28, 2024 and sell it today you would earn a total of 189,000 from holding Woori Technology Investment or generate 25.58% 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. Atinum Investment Co
Performance |
| Timeline |
| Woori Technology Inv |
| Atinum Investment |
Woori Technology and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Atinum Investment
The main advantage of trading using opposite Woori Technology and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Atinum 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 Atinum Investment will offset losses from the drop in Atinum Investment's long position.| Woori Technology vs. Korea New Network | Woori Technology vs. Dong A Eltek | Woori Technology vs. Dreamus Company | Woori Technology vs. SK Bioscience Co |
| Atinum Investment vs. Korea New Network | Atinum Investment vs. Dong A Eltek | Atinum Investment vs. Dreamus Company | Atinum Investment vs. SK Bioscience 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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