Correlation Between Woori Technology and Digital Imaging
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Digital Imaging 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 Digital Imaging 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 Digital Imaging Technology, you can compare the effects of market volatilities on Woori Technology and Digital Imaging 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 Digital Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Digital Imaging.
Diversification Opportunities for Woori Technology and Digital Imaging
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Digital is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and Digital Imaging Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digital Imaging Tech 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 Digital Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digital Imaging Tech has no effect on the direction of Woori Technology i.e., Woori Technology and Digital Imaging go up and down completely randomly.
Pair Corralation between Woori Technology and Digital Imaging
Assuming the 90 days trading horizon Woori Technology Investment is expected to under-perform the Digital Imaging. But the stock apears to be less risky and, when comparing its historical volatility, Woori Technology Investment is 1.16 times less risky than Digital Imaging. The stock trades about -0.08 of its potential returns per unit of risk. The Digital Imaging Technology is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 985,000 in Digital Imaging Technology on October 30, 2024 and sell it today you would earn a total of 837,000 from holding Digital Imaging Technology or generate 84.97% 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. Digital Imaging Technology
Performance |
| Timeline |
| Woori Technology Inv |
| Digital Imaging Tech |
Woori Technology and Digital Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Digital Imaging
The main advantage of trading using opposite Woori Technology and Digital Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Digital Imaging 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 Digital Imaging will offset losses from the drop in Digital Imaging's long position.| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV Co |
| Digital Imaging vs. SK Hynix | Digital Imaging vs. LX Semicon Co | Digital Imaging vs. Tokai Carbon Korea | Digital Imaging vs. People 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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