Correlation Between Wonbang Tech and Zinus
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech and Zinus 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 Zinus 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 Zinus Inc, you can compare the effects of market volatilities on Wonbang Tech and Zinus 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 Zinus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and Zinus.
Diversification Opportunities for Wonbang Tech and Zinus
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wonbang and Zinus is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and Zinus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinus Inc 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 Zinus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinus Inc has no effect on the direction of Wonbang Tech i.e., Wonbang Tech and Zinus go up and down completely randomly.
Pair Corralation between Wonbang Tech and Zinus
Assuming the 90 days trading horizon Wonbang Tech Co is expected to generate 1.37 times more return on investment than Zinus. However, Wonbang Tech is 1.37 times more volatile than Zinus Inc. It trades about 0.04 of its potential returns per unit of risk. Zinus Inc is currently generating about 0.0 per unit of risk. If you would invest 828,382 in Wonbang Tech Co on September 23, 2024 and sell it today you would earn a total of 431,618 from holding Wonbang Tech Co or generate 52.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonbang Tech Co vs. Zinus Inc
Performance |
| Timeline |
| Wonbang Tech |
| Zinus Inc |
Wonbang Tech and Zinus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and Zinus
The main advantage of trading using opposite Wonbang Tech and Zinus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech position performs unexpectedly, Zinus 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 Zinus will offset losses from the drop in Zinus' long position.| Wonbang Tech vs. Samsung Electronics Co | Wonbang Tech vs. Samsung Electronics Co | Wonbang Tech vs. LG Energy Solution | Wonbang Tech vs. SK Hynix |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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