Correlation Between Woori Technology and NewFlex Technology
Can any of the company-specific risk be diversified away by investing in both Woori Technology and NewFlex Technology 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 NewFlex Technology 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 NewFlex Technology Co, you can compare the effects of market volatilities on Woori Technology and NewFlex Technology 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 NewFlex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and NewFlex Technology.
Diversification Opportunities for Woori Technology and NewFlex Technology
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Woori and NewFlex is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and NewFlex Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFlex 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 NewFlex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFlex Technology has no effect on the direction of Woori Technology i.e., Woori Technology and NewFlex Technology go up and down completely randomly.
Pair Corralation between Woori Technology and NewFlex Technology
Assuming the 90 days trading horizon Woori Technology Investment is expected to under-perform the NewFlex Technology. But the stock apears to be less risky and, when comparing its historical volatility, Woori Technology Investment is 1.03 times less risky than NewFlex Technology. The stock trades about -0.12 of its potential returns per unit of risk. The NewFlex Technology Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 460,000 in NewFlex Technology Co on October 19, 2024 and sell it today you would earn a total of 70,000 from holding NewFlex Technology Co or generate 15.22% 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. NewFlex Technology Co
Performance |
| Timeline |
| Woori Technology Inv |
| NewFlex Technology |
Woori Technology and NewFlex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and NewFlex Technology
The main advantage of trading using opposite Woori Technology and NewFlex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, NewFlex Technology 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 NewFlex Technology will offset losses from the drop in NewFlex Technology's long position.| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV Co |
| NewFlex Technology vs. Handok Clean Tech | NewFlex Technology vs. Daishin Information Communications | NewFlex Technology vs. System and Application | NewFlex Technology vs. Hanwha Life Insurance |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |