Correlation Between Woori Technology and DC Media
Can any of the company-specific risk be diversified away by investing in both Woori Technology and DC Media 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 DC Media 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 DC Media Co, you can compare the effects of market volatilities on Woori Technology and DC Media 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 DC Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and DC Media.
Diversification Opportunities for Woori Technology and DC Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and 263720 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and DC Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DC Media 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 DC Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DC Media has no effect on the direction of Woori Technology i.e., Woori Technology and DC Media go up and down completely randomly.
Pair Corralation between Woori Technology and DC Media
Assuming the 90 days trading horizon Woori Technology Investment is expected to generate 1.1 times more return on investment than DC Media. However, Woori Technology is 1.1 times more volatile than DC Media Co. It trades about 0.05 of its potential returns per unit of risk. DC Media Co is currently generating about 0.01 per unit of risk. If you would invest 373,500 in Woori Technology Investment on September 24, 2024 and sell it today you would earn a total of 347,500 from holding Woori Technology Investment or generate 93.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Woori Technology Investment vs. DC Media Co
Performance |
| Timeline |
| Woori Technology Inv |
| DC Media |
Woori Technology and DC Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and DC Media
The main advantage of trading using opposite Woori Technology and DC Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, DC Media 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 DC Media will offset losses from the drop in DC Media's long position.| Woori Technology vs. KB Financial Group | Woori Technology vs. Shinhan Financial Group | Woori Technology vs. Hyundai Motor | Woori Technology vs. Hyundai Motor Co |
| DC Media vs. Iljin Display | DC Media vs. Lotte Data Communication | DC Media vs. DB Financial Investment | DC Media vs. Woori Technology Investment |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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