Correlation Between Cytogen and WOOJUNG BIO
Can any of the company-specific risk be diversified away by investing in both Cytogen and WOOJUNG BIO 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 Cytogen and WOOJUNG BIO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cytogen and WOOJUNG BIO, you can compare the effects of market volatilities on Cytogen and WOOJUNG BIO 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 Cytogen with a short position of WOOJUNG BIO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cytogen and WOOJUNG BIO.
Diversification Opportunities for Cytogen and WOOJUNG BIO
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cytogen and WOOJUNG is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cytogen and WOOJUNG BIO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WOOJUNG BIO and Cytogen 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 Cytogen are associated (or correlated) with WOOJUNG BIO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WOOJUNG BIO has no effect on the direction of Cytogen i.e., Cytogen and WOOJUNG BIO go up and down completely randomly.
Pair Corralation between Cytogen and WOOJUNG BIO
Assuming the 90 days trading horizon Cytogen is expected to under-perform the WOOJUNG BIO. But the stock apears to be less risky and, when comparing its historical volatility, Cytogen is 1.91 times less risky than WOOJUNG BIO. The stock trades about -0.08 of its potential returns per unit of risk. The WOOJUNG BIO is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 165,800 in WOOJUNG BIO on September 3, 2024 and sell it today you would earn a total of 5,500 from holding WOOJUNG BIO or generate 3.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cytogen vs. WOOJUNG BIO
Performance |
| Timeline |
| Cytogen |
| WOOJUNG BIO |
Cytogen and WOOJUNG BIO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cytogen and WOOJUNG BIO
The main advantage of trading using opposite Cytogen and WOOJUNG BIO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cytogen position performs unexpectedly, WOOJUNG BIO 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 WOOJUNG BIO will offset losses from the drop in WOOJUNG BIO's long position.| Cytogen vs. Ecoplastic | Cytogen vs. Ssangyong Information Communication | Cytogen vs. Wireless Power Amplifier | Cytogen vs. RF Materials Co |
| WOOJUNG BIO vs. EV Advanced Material | WOOJUNG BIO vs. PI Advanced Materials | WOOJUNG BIO vs. Hana Materials | WOOJUNG BIO vs. INNOX Advanced Materials |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |