Correlation Between Woori Technology and ABL Bio
Can any of the company-specific risk be diversified away by investing in both Woori Technology and ABL Bio 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 ABL Bio 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 ABL Bio, you can compare the effects of market volatilities on Woori Technology and ABL Bio 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 ABL Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and ABL Bio.
Diversification Opportunities for Woori Technology and ABL Bio
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Woori and ABL is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and ABL Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABL Bio 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 ABL Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABL Bio has no effect on the direction of Woori Technology i.e., Woori Technology and ABL Bio go up and down completely randomly.
Pair Corralation between Woori Technology and ABL Bio
Assuming the 90 days trading horizon Woori Technology Investment is expected to generate 1.34 times more return on investment than ABL Bio. However, Woori Technology is 1.34 times more volatile than ABL Bio. It trades about 0.05 of its potential returns per unit of risk. ABL Bio is currently generating about 0.03 per unit of risk. If you would invest 421,000 in Woori Technology Investment on September 2, 2024 and sell it today you would earn a total of 457,000 from holding Woori Technology Investment or generate 108.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Technology Investment vs. ABL Bio
Performance |
| Timeline |
| Woori Technology Inv |
| ABL Bio |
Woori Technology and ABL Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Technology and ABL Bio
The main advantage of trading using opposite Woori Technology and ABL Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, ABL Bio 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 ABL Bio will offset losses from the drop in ABL Bio's long position.| Woori Technology vs. Samsung Electronics Co | Woori Technology vs. Samsung Electronics Co | Woori Technology vs. KB Financial Group | Woori Technology vs. Shinhan Financial Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |