Correlation Between Innometry and Wonbang Tech
Can any of the company-specific risk be diversified away by investing in both Innometry and Wonbang Tech 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 Innometry and Wonbang Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innometry Co and Wonbang Tech Co, you can compare the effects of market volatilities on Innometry and Wonbang Tech 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 Innometry with a short position of Wonbang Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innometry and Wonbang Tech.
Diversification Opportunities for Innometry and Wonbang Tech
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Innometry and Wonbang is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Innometry Co and Wonbang Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonbang Tech and Innometry 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 Innometry Co are associated (or correlated) with Wonbang Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonbang Tech has no effect on the direction of Innometry i.e., Innometry and Wonbang Tech go up and down completely randomly.
Pair Corralation between Innometry and Wonbang Tech
Assuming the 90 days trading horizon Innometry Co is expected to generate 0.96 times more return on investment than Wonbang Tech. However, Innometry Co is 1.04 times less risky than Wonbang Tech. It trades about -0.13 of its potential returns per unit of risk. Wonbang Tech Co is currently generating about -0.13 per unit of risk. If you would invest 1,011,000 in Innometry Co on August 28, 2024 and sell it today you would lose (200,000) from holding Innometry Co or give up 19.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innometry Co vs. Wonbang Tech Co
Performance |
| Timeline |
| Innometry |
| Wonbang Tech |
Innometry and Wonbang Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innometry and Wonbang Tech
The main advantage of trading using opposite Innometry and Wonbang Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innometry position performs unexpectedly, Wonbang Tech 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 Wonbang Tech will offset losses from the drop in Wonbang Tech's long position.| Innometry vs. Daejoo Electronic Materials | Innometry vs. Parksystems Corp | Innometry vs. BH Co | Innometry vs. Partron Co |
| Wonbang Tech vs. Namhwa Industrial Co | Wonbang Tech vs. Youngsin Metal Industrial | Wonbang Tech vs. Daedong Metals Co | Wonbang Tech vs. Kukil Metal 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |