Correlation Between Wonbang Tech and SEOHAN Const
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech and SEOHAN Const 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 SEOHAN Const 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 SEOHAN Const EngcoLtd, you can compare the effects of market volatilities on Wonbang Tech and SEOHAN Const 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 SEOHAN Const. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and SEOHAN Const.
Diversification Opportunities for Wonbang Tech and SEOHAN Const
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wonbang and SEOHAN is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and SEOHAN Const EngcoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEOHAN Const EngcoLtd 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 SEOHAN Const. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEOHAN Const EngcoLtd has no effect on the direction of Wonbang Tech i.e., Wonbang Tech and SEOHAN Const go up and down completely randomly.
Pair Corralation between Wonbang Tech and SEOHAN Const
Assuming the 90 days trading horizon Wonbang Tech Co is expected to under-perform the SEOHAN Const. In addition to that, Wonbang Tech is 1.57 times more volatile than SEOHAN Const EngcoLtd. It trades about -0.18 of its total potential returns per unit of risk. SEOHAN Const EngcoLtd is currently generating about 0.08 per unit of volatility. If you would invest 76,800 in SEOHAN Const EngcoLtd on August 28, 2024 and sell it today you would earn a total of 2,200 from holding SEOHAN Const EngcoLtd or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonbang Tech Co vs. SEOHAN Const EngcoLtd
Performance |
| Timeline |
| Wonbang Tech |
| SEOHAN Const EngcoLtd |
Wonbang Tech and SEOHAN Const Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and SEOHAN Const
The main advantage of trading using opposite Wonbang Tech and SEOHAN Const positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech position performs unexpectedly, SEOHAN Const 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 SEOHAN Const will offset losses from the drop in SEOHAN Const's 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 |
| SEOHAN Const vs. Hanyang ENG Co | SEOHAN Const vs. Nam Hwa Construction | SEOHAN Const vs. KT Submarine Co | SEOHAN Const vs. Yooshin Engineering |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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