Correlation Between Wonbang Tech and Puloon Technology
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech and Puloon Technology 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 Puloon Technology 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 Puloon Technology, you can compare the effects of market volatilities on Wonbang Tech and Puloon Technology 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 Puloon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and Puloon Technology.
Diversification Opportunities for Wonbang Tech and Puloon Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wonbang and Puloon is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and Puloon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puloon Technology 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 Puloon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puloon Technology has no effect on the direction of Wonbang Tech i.e., Wonbang Tech and Puloon Technology go up and down completely randomly.
Pair Corralation between Wonbang Tech and Puloon Technology
Assuming the 90 days trading horizon Wonbang Tech Co is expected to under-perform the Puloon Technology. In addition to that, Wonbang Tech is 1.3 times more volatile than Puloon Technology. It trades about -0.17 of its total potential returns per unit of risk. Puloon Technology is currently generating about -0.13 per unit of volatility. If you would invest 670,000 in Puloon Technology on August 28, 2024 and sell it today you would lose (68,000) from holding Puloon Technology or give up 10.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonbang Tech Co vs. Puloon Technology
Performance |
| Timeline |
| Wonbang Tech |
| Puloon Technology |
Wonbang Tech and Puloon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and Puloon Technology
The main advantage of trading using opposite Wonbang Tech and Puloon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech position performs unexpectedly, Puloon Technology 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 Puloon Technology will offset losses from the drop in Puloon Technology'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 |
| Puloon Technology vs. Korea Real Estate | Puloon Technology vs. Korea Ratings Co | Puloon Technology vs. IQuest Co | Puloon Technology 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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