Correlation Between Woori Technology and Vieworks
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Vieworks 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 Vieworks 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 Vieworks Co, you can compare the effects of market volatilities on Woori Technology and Vieworks 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 Vieworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Vieworks.
Diversification Opportunities for Woori Technology and Vieworks
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and Vieworks is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and Vieworks Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vieworks 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 Vieworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vieworks has no effect on the direction of Woori Technology i.e., Woori Technology and Vieworks go up and down completely randomly.
Pair Corralation between Woori Technology and Vieworks
Assuming the 90 days trading horizon Woori Technology Investment is expected to generate 2.7 times more return on investment than Vieworks. However, Woori Technology is 2.7 times more volatile than Vieworks Co. It trades about 0.06 of its potential returns per unit of risk. Vieworks Co is currently generating about -0.03 per unit of risk. If you would invest 376,000 in Woori Technology Investment on September 13, 2024 and sell it today you would earn a total of 431,000 from holding Woori Technology Investment or generate 114.63% 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. Vieworks Co
Performance |
| Timeline |
| Woori Technology Inv |
| Vieworks |
Woori Technology and Vieworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Vieworks
The main advantage of trading using opposite Woori Technology and Vieworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Vieworks 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 Vieworks will offset losses from the drop in Vieworks' 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 |
| Vieworks vs. InBody CoLtd | Vieworks vs. Seegene | Vieworks vs. DIO Corporation | Vieworks vs. LEENO Industrial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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