Correlation Between Wonbang Tech and SS TECH
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech and SS TECH 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 SS TECH 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 SS TECH, you can compare the effects of market volatilities on Wonbang Tech and SS TECH 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 SS TECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and SS TECH.
Diversification Opportunities for Wonbang Tech and SS TECH
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wonbang and 101490 is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and SS TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS TECH 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 SS TECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS TECH has no effect on the direction of Wonbang Tech i.e., Wonbang Tech and SS TECH go up and down completely randomly.
Pair Corralation between Wonbang Tech and SS TECH
Assuming the 90 days trading horizon Wonbang Tech Co is expected to under-perform the SS TECH. In addition to that, Wonbang Tech is 1.27 times more volatile than SS TECH. It trades about -0.04 of its total potential returns per unit of risk. SS TECH is currently generating about -0.05 per unit of volatility. If you would invest 4,011,105 in SS TECH on August 25, 2024 and sell it today you would lose (1,711,105) from holding SS TECH or give up 42.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonbang Tech Co vs. SS TECH
Performance |
| Timeline |
| Wonbang Tech |
| SS TECH |
Wonbang Tech and SS TECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonbang Tech and SS TECH
The main advantage of trading using opposite Wonbang Tech and SS TECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech position performs unexpectedly, SS TECH 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 SS TECH will offset losses from the drop in SS TECH'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 |
| SS TECH vs. Korea Real Estate | SS TECH vs. Korea Ratings Co | SS TECH vs. IQuest Co | SS TECH 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |