Correlation Between Woori Technology and Cuckoo Electronics
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Cuckoo Electronics 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 Cuckoo Electronics 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 Cuckoo Electronics Co, you can compare the effects of market volatilities on Woori Technology and Cuckoo Electronics 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 Cuckoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Cuckoo Electronics.
Diversification Opportunities for Woori Technology and Cuckoo Electronics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Woori and Cuckoo is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and Cuckoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Electronics 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 Cuckoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Electronics has no effect on the direction of Woori Technology i.e., Woori Technology and Cuckoo Electronics go up and down completely randomly.
Pair Corralation between Woori Technology and Cuckoo Electronics
Assuming the 90 days trading horizon Woori Technology Investment is expected to under-perform the Cuckoo Electronics. In addition to that, Woori Technology is 2.21 times more volatile than Cuckoo Electronics Co. It trades about -0.36 of its total potential returns per unit of risk. Cuckoo Electronics Co is currently generating about 0.04 per unit of volatility. If you would invest 2,290,000 in Cuckoo Electronics Co on October 1, 2024 and sell it today you would earn a total of 25,000 from holding Cuckoo Electronics Co or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology Investment vs. Cuckoo Electronics Co
Performance |
| Timeline |
| Woori Technology Inv |
| Cuckoo Electronics |
Woori Technology and Cuckoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and Cuckoo Electronics
The main advantage of trading using opposite Woori Technology and Cuckoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Cuckoo Electronics 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 Cuckoo Electronics will offset losses from the drop in Cuckoo Electronics' long position.| Woori Technology vs. KB Financial Group | Woori Technology vs. Hyundai Motor | Woori Technology vs. Hyundai Motor Co | Woori Technology vs. Hyundai Motor Co |
| Cuckoo Electronics vs. Woori Technology Investment | Cuckoo Electronics vs. Samsung Card Co | Cuckoo Electronics vs. Korea Real Estate | Cuckoo Electronics vs. CHOROKBAEM PANY Co |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |