Correlation Between Wonbang Tech and Aju IB
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech and Aju IB 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 Aju IB 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 Aju IB Investment, you can compare the effects of market volatilities on Wonbang Tech and Aju IB 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 Aju IB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and Aju IB.
Diversification Opportunities for Wonbang Tech and Aju IB
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wonbang and Aju is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and Aju IB Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aju IB Investment 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 Aju IB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aju IB Investment has no effect on the direction of Wonbang Tech i.e., Wonbang Tech and Aju IB go up and down completely randomly.
Pair Corralation between Wonbang Tech and Aju IB
Assuming the 90 days trading horizon Wonbang Tech Co is expected to generate 0.88 times more return on investment than Aju IB. However, Wonbang Tech Co is 1.14 times less risky than Aju IB. It trades about 0.28 of its potential returns per unit of risk. Aju IB Investment is currently generating about -0.15 per unit of risk. If you would invest 1,310,000 in Wonbang Tech Co on October 23, 2024 and sell it today you would earn a total of 146,000 from holding Wonbang Tech Co or generate 11.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonbang Tech Co vs. Aju IB Investment
Performance |
| Timeline |
| Wonbang Tech |
| Aju IB Investment |
Wonbang Tech and Aju IB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and Aju IB
The main advantage of trading using opposite Wonbang Tech and Aju IB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech position performs unexpectedly, Aju IB 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 Aju IB will offset losses from the drop in Aju IB's long position.| Wonbang Tech vs. Hana Materials | Wonbang Tech vs. Top Material Co | Wonbang Tech vs. Daejoo Electronic Materials | Wonbang Tech vs. Nable Communications |
| Aju IB vs. Atinum Investment Co | Aju IB vs. SBI Investment KOREA | Aju IB vs. Daesung Private Equity | Aju IB vs. Busan Industrial 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |