Correlation Between WooDeumGee Farm and Lotte Data
Can any of the company-specific risk be diversified away by investing in both WooDeumGee Farm and Lotte Data 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 WooDeumGee Farm and Lotte Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WooDeumGee Farm Co, and Lotte Data Communication, you can compare the effects of market volatilities on WooDeumGee Farm and Lotte Data 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 WooDeumGee Farm with a short position of Lotte Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of WooDeumGee Farm and Lotte Data.
Diversification Opportunities for WooDeumGee Farm and Lotte Data
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between WooDeumGee and Lotte is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding WooDeumGee Farm Co, and Lotte Data Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotte Data Communication and WooDeumGee Farm 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 WooDeumGee Farm Co, are associated (or correlated) with Lotte Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotte Data Communication has no effect on the direction of WooDeumGee Farm i.e., WooDeumGee Farm and Lotte Data go up and down completely randomly.
Pair Corralation between WooDeumGee Farm and Lotte Data
Assuming the 90 days trading horizon WooDeumGee Farm is expected to generate 5.69 times less return on investment than Lotte Data. In addition to that, WooDeumGee Farm is 1.08 times more volatile than Lotte Data Communication. It trades about 0.04 of its total potential returns per unit of risk. Lotte Data Communication is currently generating about 0.24 per unit of volatility. If you would invest 1,954,000 in Lotte Data Communication on November 28, 2024 and sell it today you would earn a total of 106,000 from holding Lotte Data Communication or generate 5.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
WooDeumGee Farm Co, vs. Lotte Data Communication
Performance |
| Timeline |
| WooDeumGee Farm Co, |
| Lotte Data Communication |
WooDeumGee Farm and Lotte Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WooDeumGee Farm and Lotte Data
The main advantage of trading using opposite WooDeumGee Farm and Lotte Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WooDeumGee Farm position performs unexpectedly, Lotte Data 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 Lotte Data will offset losses from the drop in Lotte Data's long position.| WooDeumGee Farm vs. Hyosung Advanced Materials | WooDeumGee Farm vs. PI Advanced Materials | WooDeumGee Farm vs. Wonil Special Steel | WooDeumGee Farm vs. National Plastic Co |
| Lotte Data vs. Sangsin Energy Display | Lotte Data vs. Playgram Co | Lotte Data vs. Innowireless Co | Lotte Data vs. Daejung Chemicals Metals |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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