Correlation Between INtRON Biotechnology and Wonbang Tech
Can any of the company-specific risk be diversified away by investing in both INtRON Biotechnology and Wonbang Tech 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 INtRON Biotechnology and Wonbang Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iNtRON Biotechnology and Wonbang Tech Co, you can compare the effects of market volatilities on INtRON Biotechnology and Wonbang Tech 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 INtRON Biotechnology with a short position of Wonbang Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of INtRON Biotechnology and Wonbang Tech.
Diversification Opportunities for INtRON Biotechnology and Wonbang Tech
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between INtRON and Wonbang is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding iNtRON Biotechnology and Wonbang Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonbang Tech and INtRON Biotechnology 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 iNtRON Biotechnology are associated (or correlated) with Wonbang Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonbang Tech has no effect on the direction of INtRON Biotechnology i.e., INtRON Biotechnology and Wonbang Tech go up and down completely randomly.
Pair Corralation between INtRON Biotechnology and Wonbang Tech
Assuming the 90 days trading horizon iNtRON Biotechnology is expected to generate 0.78 times more return on investment than Wonbang Tech. However, iNtRON Biotechnology is 1.27 times less risky than Wonbang Tech. It trades about 0.0 of its potential returns per unit of risk. Wonbang Tech Co is currently generating about -0.04 per unit of risk. If you would invest 619,000 in iNtRON Biotechnology on August 25, 2024 and sell it today you would lose (58,000) from holding iNtRON Biotechnology or give up 9.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
iNtRON Biotechnology vs. Wonbang Tech Co
Performance |
| Timeline |
| iNtRON Biotechnology |
| Wonbang Tech |
INtRON Biotechnology and Wonbang Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INtRON Biotechnology and Wonbang Tech
The main advantage of trading using opposite INtRON Biotechnology and Wonbang Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INtRON Biotechnology position performs unexpectedly, Wonbang Tech 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 Wonbang Tech will offset losses from the drop in Wonbang Tech's long position.| INtRON Biotechnology vs. Medy Tox | INtRON Biotechnology vs. Oscotec | INtRON Biotechnology vs. Genexine | INtRON Biotechnology vs. Helixmith Co |
| Wonbang Tech vs. Solution Advanced Technology | Wonbang Tech vs. Ilji Technology Co | Wonbang Tech vs. Kakao Games Corp | Wonbang Tech vs. iNtRON Biotechnology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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