Correlation Between Woori Technology and SV Investment
Can any of the company-specific risk be diversified away by investing in both Woori Technology and SV Investment 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 SV Investment 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 SV Investment, you can compare the effects of market volatilities on Woori Technology and SV Investment 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 SV Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and SV Investment.
Diversification Opportunities for Woori Technology and SV Investment
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and 289080 is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and SV Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SV Investment 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 SV Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SV Investment has no effect on the direction of Woori Technology i.e., Woori Technology and SV Investment go up and down completely randomly.
Pair Corralation between Woori Technology and SV Investment
Assuming the 90 days trading horizon Woori Technology Investment is expected to generate 2.59 times more return on investment than SV Investment. However, Woori Technology is 2.59 times more volatile than SV Investment. It trades about 0.15 of its potential returns per unit of risk. SV Investment is currently generating about -0.23 per unit of risk. If you would invest 825,000 in Woori Technology Investment on August 26, 2024 and sell it today you would earn a total of 137,000 from holding Woori Technology Investment or generate 16.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology Investment vs. SV Investment
Performance |
| Timeline |
| Woori Technology Inv |
| SV Investment |
Woori Technology and SV Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and SV Investment
The main advantage of trading using opposite Woori Technology and SV Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, SV Investment 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 SV Investment will offset losses from the drop in SV Investment's long position.| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV Co |
| SV Investment vs. Atinum Investment Co | SV Investment vs. SBI Investment KOREA | SV Investment vs. Daesung Private Equity | SV Investment vs. Busan Industrial 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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