Correlation Between Woorim Machinery and MediaZen
Can any of the company-specific risk be diversified away by investing in both Woorim Machinery and MediaZen 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 Woorim Machinery and MediaZen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woorim Machinery Co and MediaZen, you can compare the effects of market volatilities on Woorim Machinery and MediaZen 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 Woorim Machinery with a short position of MediaZen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woorim Machinery and MediaZen.
Diversification Opportunities for Woorim Machinery and MediaZen
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Woorim and MediaZen is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Woorim Machinery Co and MediaZen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaZen and Woorim Machinery 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 Woorim Machinery Co are associated (or correlated) with MediaZen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaZen has no effect on the direction of Woorim Machinery i.e., Woorim Machinery and MediaZen go up and down completely randomly.
Pair Corralation between Woorim Machinery and MediaZen
Assuming the 90 days trading horizon Woorim Machinery Co is expected to under-perform the MediaZen. In addition to that, Woorim Machinery is 1.18 times more volatile than MediaZen. It trades about -0.01 of its total potential returns per unit of risk. MediaZen is currently generating about 0.01 per unit of volatility. If you would invest 1,240,000 in MediaZen on August 31, 2024 and sell it today you would lose (110,000) from holding MediaZen or give up 8.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Woorim Machinery Co vs. MediaZen
Performance |
| Timeline |
| Woorim Machinery |
| MediaZen |
Woorim Machinery and MediaZen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woorim Machinery and MediaZen
The main advantage of trading using opposite Woorim Machinery and MediaZen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woorim Machinery position performs unexpectedly, MediaZen 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 MediaZen will offset losses from the drop in MediaZen's long position.| Woorim Machinery vs. Pureun Mutual Savings | Woorim Machinery vs. TK Chemical | Woorim Machinery vs. Golden Bridge Investment | Woorim Machinery vs. Youngchang Chemical Co |
| MediaZen vs. Samsung Electronics Co | MediaZen vs. Samsung Electronics Co | MediaZen vs. LG Energy Solution | MediaZen vs. SK Hynix |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |