Correlation Between Genolution and WOOJUNG BIO
Can any of the company-specific risk be diversified away by investing in both Genolution 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 Genolution and WOOJUNG BIO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genolution and WOOJUNG BIO, you can compare the effects of market volatilities on Genolution 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 Genolution with a short position of WOOJUNG BIO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genolution and WOOJUNG BIO.
Diversification Opportunities for Genolution and WOOJUNG BIO
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Genolution and WOOJUNG is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Genolution and WOOJUNG BIO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WOOJUNG BIO and Genolution 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 Genolution 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 Genolution i.e., Genolution and WOOJUNG BIO go up and down completely randomly.
Pair Corralation between Genolution and WOOJUNG BIO
Assuming the 90 days trading horizon Genolution is expected to under-perform the WOOJUNG BIO. But the stock apears to be less risky and, when comparing its historical volatility, Genolution is 1.81 times less risky than WOOJUNG BIO. The stock trades about -0.06 of its potential returns per unit of risk. The WOOJUNG BIO is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 303,500 in WOOJUNG BIO on September 1, 2024 and sell it today you would lose (132,200) from holding WOOJUNG BIO or give up 43.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Genolution vs. WOOJUNG BIO
Performance |
| Timeline |
| Genolution |
| WOOJUNG BIO |
Genolution and WOOJUNG BIO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genolution and WOOJUNG BIO
The main advantage of trading using opposite Genolution and WOOJUNG BIO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genolution 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.| Genolution vs. Duksan Hi Metal | Genolution vs. Shinsegae Information Communication | Genolution vs. Daesung Hi Tech Co | Genolution vs. Kukil Metal Co |
| WOOJUNG BIO vs. KNOTUS CoLtd | WOOJUNG BIO vs. AptaBio Therapeutics | WOOJUNG BIO vs. Cytogen | WOOJUNG BIO vs. Genolution |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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