Correlation Between WONIK Materials and S-Fuelcell
Can any of the company-specific risk be diversified away by investing in both WONIK Materials and S-Fuelcell 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 WONIK Materials and S-Fuelcell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WONIK Materials CoLtd and S Fuelcell co, you can compare the effects of market volatilities on WONIK Materials and S-Fuelcell 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 WONIK Materials with a short position of S-Fuelcell. Check out your portfolio center. Please also check ongoing floating volatility patterns of WONIK Materials and S-Fuelcell.
Diversification Opportunities for WONIK Materials and S-Fuelcell
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between WONIK and S-Fuelcell is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding WONIK Materials CoLtd and S Fuelcell co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S Fuelcell co and WONIK Materials 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 WONIK Materials CoLtd are associated (or correlated) with S-Fuelcell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S Fuelcell co has no effect on the direction of WONIK Materials i.e., WONIK Materials and S-Fuelcell go up and down completely randomly.
Pair Corralation between WONIK Materials and S-Fuelcell
Assuming the 90 days trading horizon WONIK Materials CoLtd is expected to generate 0.74 times more return on investment than S-Fuelcell. However, WONIK Materials CoLtd is 1.34 times less risky than S-Fuelcell. It trades about -0.09 of its potential returns per unit of risk. S Fuelcell co is currently generating about -0.1 per unit of risk. If you would invest 1,843,000 in WONIK Materials CoLtd on September 13, 2024 and sell it today you would lose (95,000) from holding WONIK Materials CoLtd or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WONIK Materials CoLtd vs. S Fuelcell co
Performance |
| Timeline |
| WONIK Materials CoLtd |
| S Fuelcell co |
WONIK Materials and S-Fuelcell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WONIK Materials and S-Fuelcell
The main advantage of trading using opposite WONIK Materials and S-Fuelcell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WONIK Materials position performs unexpectedly, S-Fuelcell 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 S-Fuelcell will offset losses from the drop in S-Fuelcell's long position.| WONIK Materials vs. Soulbrain Holdings Co | WONIK Materials vs. Wonik Ips Co | WONIK Materials vs. TES Co | WONIK Materials vs. Suprema |
| S-Fuelcell vs. Ecopro BM Co | S-Fuelcell vs. Sangsin Energy Display | S-Fuelcell vs. Solution Advanced Technology | S-Fuelcell vs. Busan Industrial 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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