Correlation Between Woori Technology and Value Added
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Value Added 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 Value Added 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 Value Added Technology, you can compare the effects of market volatilities on Woori Technology and Value Added 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 Value Added. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Value Added.
Diversification Opportunities for Woori Technology and Value Added
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and Value is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and Value Added Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Added Technology 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 Value Added. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Added Technology has no effect on the direction of Woori Technology i.e., Woori Technology and Value Added go up and down completely randomly.
Pair Corralation between Woori Technology and Value Added
Assuming the 90 days trading horizon Woori Technology Investment is expected to generate 2.72 times more return on investment than Value Added. However, Woori Technology is 2.72 times more volatile than Value Added Technology. It trades about 0.14 of its potential returns per unit of risk. Value Added Technology is currently generating about -0.34 per unit of risk. If you would invest 867,000 in Woori Technology Investment on September 5, 2024 and sell it today you would earn a total of 121,000 from holding Woori Technology Investment or generate 13.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology Investment vs. Value Added Technology
Performance |
| Timeline |
| Woori Technology Inv |
| Value Added Technology |
Woori Technology and Value Added Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Value Added
The main advantage of trading using opposite Woori Technology and Value Added positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Value Added 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 Value Added will offset losses from the drop in Value Added's long position.| Woori Technology vs. Dongjin Semichem Co | Woori Technology vs. AhnLab Inc | Woori Technology vs. Posco ICT | Woori Technology vs. CJ ENM |
| Value Added vs. AptaBio Therapeutics | Value Added vs. KT Hitel | Value Added vs. SillaJen | Value Added vs. Cytogen |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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