Correlation Between Woori Technology and MEDICOX
Can any of the company-specific risk be diversified away by investing in both Woori Technology and MEDICOX 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 MEDICOX 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 MEDICOX Co, you can compare the effects of market volatilities on Woori Technology and MEDICOX 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 MEDICOX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and MEDICOX.
Diversification Opportunities for Woori Technology and MEDICOX
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and MEDICOX is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and MEDICOX Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICOX 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 MEDICOX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICOX has no effect on the direction of Woori Technology i.e., Woori Technology and MEDICOX go up and down completely randomly.
Pair Corralation between Woori Technology and MEDICOX
Assuming the 90 days trading horizon Woori Technology Investment is expected to generate 0.89 times more return on investment than MEDICOX. However, Woori Technology Investment is 1.13 times less risky than MEDICOX. It trades about 0.05 of its potential returns per unit of risk. MEDICOX Co is currently generating about -0.06 per unit of risk. If you would invest 630,000 in Woori Technology Investment on September 14, 2024 and sell it today you would earn a total of 197,000 from holding Woori Technology Investment or generate 31.27% 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. MEDICOX Co
Performance |
| Timeline |
| Woori Technology Inv |
| MEDICOX |
Woori Technology and MEDICOX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and MEDICOX
The main advantage of trading using opposite Woori Technology and MEDICOX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, MEDICOX 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 MEDICOX will offset losses from the drop in MEDICOX's long position.| Woori Technology vs. KB Financial Group | Woori Technology vs. Shinhan Financial Group | Woori Technology vs. Hana Financial | Woori Technology vs. Woori Financial Group |
| MEDICOX vs. HyVision System | MEDICOX vs. Daebo Magnetic CoLtd | MEDICOX vs. Vitzro Tech Co | MEDICOX vs. Solution Advanced Technology |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |