Correlation Between Wonbang Tech and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Wonbang Tech and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and Inzi Display.
Diversification Opportunities for Wonbang Tech and Inzi Display
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wonbang and Inzi is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Wonbang Tech i.e., Wonbang Tech and Inzi Display go up and down completely randomly.
Pair Corralation between Wonbang Tech and Inzi Display
Assuming the 90 days trading horizon Wonbang Tech Co is expected to generate 1.2 times more return on investment than Inzi Display. However, Wonbang Tech is 1.2 times more volatile than Inzi Display CoLtd. It trades about 0.04 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about 0.0 per unit of risk. If you would invest 895,480 in Wonbang Tech Co on August 28, 2024 and sell it today you would earn a total of 506,520 from holding Wonbang Tech Co or generate 56.56% 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. Inzi Display CoLtd
Performance |
| Timeline |
| Wonbang Tech |
| Inzi Display CoLtd |
Wonbang Tech and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and Inzi Display
The main advantage of trading using opposite Wonbang Tech and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display'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 |
| Inzi Display vs. Korea Real Estate | Inzi Display vs. Korea Ratings Co | Inzi Display vs. IQuest Co | Inzi Display vs. Wonbang Tech 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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