Correlation Between APro and Wonil Special
Can any of the company-specific risk be diversified away by investing in both APro and Wonil Special 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 APro and Wonil Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between APro Co and Wonil Special Steel, you can compare the effects of market volatilities on APro and Wonil Special 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 APro with a short position of Wonil Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of APro and Wonil Special.
Diversification Opportunities for APro and Wonil Special
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between APro and Wonil is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding APro Co and Wonil Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonil Special Steel and APro 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 APro Co are associated (or correlated) with Wonil Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonil Special Steel has no effect on the direction of APro i.e., APro and Wonil Special go up and down completely randomly.
Pair Corralation between APro and Wonil Special
Assuming the 90 days trading horizon APro is expected to generate 1.71 times less return on investment than Wonil Special. In addition to that, APro is 2.08 times more volatile than Wonil Special Steel. It trades about 0.09 of its total potential returns per unit of risk. Wonil Special Steel is currently generating about 0.33 per unit of volatility. If you would invest 690,630 in Wonil Special Steel on October 13, 2024 and sell it today you would earn a total of 42,370 from holding Wonil Special Steel or generate 6.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APro Co vs. Wonil Special Steel
Performance |
| Timeline |
| APro |
| Wonil Special Steel |
APro and Wonil Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APro and Wonil Special
The main advantage of trading using opposite APro and Wonil Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APro position performs unexpectedly, Wonil Special 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 Wonil Special will offset losses from the drop in Wonil Special's long position.| APro vs. DoubleU Games Co | APro vs. Guyoung Technology Co | APro vs. Vissem Electronics Co | APro vs. Ilji Technology Co |
| Wonil Special vs. Woori Technology Investment | Wonil Special vs. Coloray International Investment | Wonil Special vs. Formetal Co | Wonil Special vs. Heungkuk Metaltech CoLtd |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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