Correlation Between Kortek and Woori Technology
Can any of the company-specific risk be diversified away by investing in both Kortek and Woori Technology 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 Kortek and Woori Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kortek and Woori Technology Investment, you can compare the effects of market volatilities on Kortek and Woori Technology 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 Kortek with a short position of Woori Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kortek and Woori Technology.
Diversification Opportunities for Kortek and Woori Technology
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kortek and Woori is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Kortek and Woori Technology Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woori Technology Inv and Kortek 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 Kortek are associated (or correlated) with Woori Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woori Technology Inv has no effect on the direction of Kortek i.e., Kortek and Woori Technology go up and down completely randomly.
Pair Corralation between Kortek and Woori Technology
Assuming the 90 days trading horizon Kortek is expected to generate 0.28 times more return on investment than Woori Technology. However, Kortek is 3.55 times less risky than Woori Technology. It trades about 0.56 of its potential returns per unit of risk. Woori Technology Investment is currently generating about 0.1 per unit of risk. If you would invest 720,843 in Kortek on October 9, 2024 and sell it today you would earn a total of 88,157 from holding Kortek or generate 12.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kortek vs. Woori Technology Investment
Performance |
| Timeline |
| Kortek |
| Woori Technology Inv |
Kortek and Woori Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kortek and Woori Technology
The main advantage of trading using opposite Kortek and Woori Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kortek position performs unexpectedly, Woori Technology 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 Woori Technology will offset losses from the drop in Woori Technology's long position.| Kortek vs. Daejung Chemicals Metals | Kortek vs. Golden Bridge Investment | Kortek vs. KTB Investment Securities | Kortek vs. DSC Investment |
| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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