Correlation Between Woori Technology and EyeGene
Can any of the company-specific risk be diversified away by investing in both Woori Technology and EyeGene 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 EyeGene 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 EyeGene, you can compare the effects of market volatilities on Woori Technology and EyeGene 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 EyeGene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and EyeGene.
Diversification Opportunities for Woori Technology and EyeGene
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and EyeGene is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and EyeGene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EyeGene 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 EyeGene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EyeGene has no effect on the direction of Woori Technology i.e., Woori Technology and EyeGene go up and down completely randomly.
Pair Corralation between Woori Technology and EyeGene
If you would invest 424,000 in Woori Technology Investment on September 4, 2024 and sell it today you would earn a total of 530,000 from holding Woori Technology Investment or generate 125.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Woori Technology Investment vs. EyeGene
Performance |
| Timeline |
| Woori Technology Inv |
| EyeGene |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Woori Technology and EyeGene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and EyeGene
The main advantage of trading using opposite Woori Technology and EyeGene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, EyeGene 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 EyeGene will offset losses from the drop in EyeGene's long position.| Woori Technology vs. Dongjin Semichem Co | Woori Technology vs. AhnLab Inc | Woori Technology vs. Posco ICT | Woori Technology vs. CJ ENM |
| EyeGene vs. NICE Information Service | EyeGene vs. Pureun Mutual Savings | EyeGene vs. System and Application | EyeGene vs. Jb Financial |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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