Correlation Between Wonbang Tech and Duksan Hi
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech and Duksan Hi 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 Duksan Hi 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 Duksan Hi Metal, you can compare the effects of market volatilities on Wonbang Tech and Duksan Hi 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 Duksan Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and Duksan Hi.
Diversification Opportunities for Wonbang Tech and Duksan Hi
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wonbang and Duksan is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and Duksan Hi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duksan Hi Metal 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 Duksan Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duksan Hi Metal has no effect on the direction of Wonbang Tech i.e., Wonbang Tech and Duksan Hi go up and down completely randomly.
Pair Corralation between Wonbang Tech and Duksan Hi
Assuming the 90 days trading horizon Wonbang Tech Co is expected to generate 1.21 times more return on investment than Duksan Hi. However, Wonbang Tech is 1.21 times more volatile than Duksan Hi Metal. It trades about 0.04 of its potential returns per unit of risk. Duksan Hi Metal is currently generating about -0.01 per unit of risk. If you would invest 919,245 in Wonbang Tech Co on August 24, 2024 and sell it today you would earn a total of 455,755 from holding Wonbang Tech Co or generate 49.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonbang Tech Co vs. Duksan Hi Metal
Performance |
| Timeline |
| Wonbang Tech |
| Duksan Hi Metal |
Wonbang Tech and Duksan Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and Duksan Hi
The main advantage of trading using opposite Wonbang Tech and Duksan Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech position performs unexpectedly, Duksan Hi 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 Duksan Hi will offset losses from the drop in Duksan Hi'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 |
| Duksan Hi vs. Korea Real Estate | Duksan Hi vs. Korea Ratings Co | Duksan Hi vs. IQuest Co | Duksan Hi 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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