Correlation Between NICE Total and Woori Technology
Can any of the company-specific risk be diversified away by investing in both NICE Total and Woori 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 NICE Total and Woori Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NICE Total Cash and Woori Technology Investment, you can compare the effects of market volatilities on NICE Total and Woori 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 NICE Total with a short position of Woori Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of NICE Total and Woori Technology.
Diversification Opportunities for NICE Total and Woori Technology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between NICE and Woori is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding NICE Total Cash and Woori Technology Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woori Technology Inv and NICE Total 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 NICE Total Cash are associated (or correlated) with Woori Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woori Technology Inv has no effect on the direction of NICE Total i.e., NICE Total and Woori Technology go up and down completely randomly.
Pair Corralation between NICE Total and Woori Technology
Assuming the 90 days trading horizon NICE Total Cash is expected to under-perform the Woori Technology. But the stock apears to be less risky and, when comparing its historical volatility, NICE Total Cash is 2.3 times less risky than Woori Technology. The stock trades about -0.03 of its potential returns per unit of risk. The Woori Technology Investment is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 412,000 in Woori Technology Investment on August 31, 2024 and sell it today you would earn a total of 466,000 from holding Woori Technology Investment or generate 113.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
NICE Total Cash vs. Woori Technology Investment
Performance |
| Timeline |
| NICE Total Cash |
| Woori Technology Inv |
NICE Total and Woori Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NICE Total and Woori Technology
The main advantage of trading using opposite NICE Total and Woori Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NICE Total position performs unexpectedly, Woori 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 Woori Technology will offset losses from the drop in Woori Technology's long position.| NICE Total vs. Dongil Metal Co | NICE Total vs. Heungkuk Metaltech CoLtd | NICE Total vs. MetaLabs Co | NICE Total vs. Pungguk Ethanol Industrial |
| Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |