Correlation Between Woori Technology and TSI
Can any of the company-specific risk be diversified away by investing in both Woori Technology and TSI 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 TSI 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 TSI Co, you can compare the effects of market volatilities on Woori Technology and TSI 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 TSI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and TSI.
Diversification Opportunities for Woori Technology and TSI
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and TSI is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and TSI Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSI Co 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 TSI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSI Co has no effect on the direction of Woori Technology i.e., Woori Technology and TSI go up and down completely randomly.
Pair Corralation between Woori Technology and TSI
Assuming the 90 days trading horizon Woori Technology Investment is expected to generate 2.04 times more return on investment than TSI. However, Woori Technology is 2.04 times more volatile than TSI Co. It trades about 0.11 of its potential returns per unit of risk. TSI Co is currently generating about -0.35 per unit of risk. If you would invest 867,000 in Woori Technology Investment on September 4, 2024 and sell it today you would earn a total of 87,000 from holding Woori Technology Investment or generate 10.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology Investment vs. TSI Co
Performance |
| Timeline |
| Woori Technology Inv |
| TSI Co |
Woori Technology and TSI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and TSI
The main advantage of trading using opposite Woori Technology and TSI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, TSI 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 TSI will offset losses from the drop in TSI's long position.| Woori Technology vs. Dongjin Semichem Co | Woori Technology vs. AhnLab Inc | Woori Technology vs. Posco ICT | Woori Technology vs. CJ ENM |
| TSI vs. Lotte Non Life Insurance | TSI vs. Kukil Metal Co | TSI vs. DONGKUK TED METAL | TSI vs. Taeyang Metal 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Positions Ratings 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 | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |