Correlation Between Wonbang Tech and Daehan Synthetic
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech and Daehan Synthetic 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 Wonbang Tech and Daehan Synthetic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wonbang Tech Co and Daehan Synthetic Fiber, you can compare the effects of market volatilities on Wonbang Tech and Daehan Synthetic 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 Wonbang Tech with a short position of Daehan Synthetic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and Daehan Synthetic.
Diversification Opportunities for Wonbang Tech and Daehan Synthetic
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wonbang and Daehan is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and Daehan Synthetic Fiber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daehan Synthetic Fiber and Wonbang Tech 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 Wonbang Tech Co are associated (or correlated) with Daehan Synthetic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daehan Synthetic Fiber has no effect on the direction of Wonbang Tech i.e., Wonbang Tech and Daehan Synthetic go up and down completely randomly.
Pair Corralation between Wonbang Tech and Daehan Synthetic
Assuming the 90 days trading horizon Wonbang Tech Co is expected to generate 3.42 times more return on investment than Daehan Synthetic. However, Wonbang Tech is 3.42 times more volatile than Daehan Synthetic Fiber. It trades about 0.26 of its potential returns per unit of risk. Daehan Synthetic Fiber is currently generating about 0.08 per unit of risk. If you would invest 1,325,000 in Wonbang Tech Co on November 27, 2024 and sell it today you would earn a total of 126,000 from holding Wonbang Tech Co or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonbang Tech Co vs. Daehan Synthetic Fiber
Performance |
| Timeline |
| Wonbang Tech |
| Daehan Synthetic Fiber |
Wonbang Tech and Daehan Synthetic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and Daehan Synthetic
The main advantage of trading using opposite Wonbang Tech and Daehan Synthetic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech position performs unexpectedly, Daehan Synthetic 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 Daehan Synthetic will offset losses from the drop in Daehan Synthetic's long position.| Wonbang Tech vs. Display Tech Co | Wonbang Tech vs. Inzi Display CoLtd | Wonbang Tech vs. Sangsin Energy Display | Wonbang Tech vs. DoubleU Games Co |
| Daehan Synthetic vs. Dongil Metal Co | Daehan Synthetic vs. Duksan Hi Metal | Daehan Synthetic vs. Alton Sports CoLtd | Daehan Synthetic vs. Cheryong Industrial CoLtd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |