Correlation Between Woori Technology and AnterogenCoLtd
Can any of the company-specific risk be diversified away by investing in both Woori Technology and AnterogenCoLtd 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 Woori Technology and AnterogenCoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woori Technology Investment and AnterogenCoLtd, you can compare the effects of market volatilities on Woori Technology and AnterogenCoLtd 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 Woori Technology with a short position of AnterogenCoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and AnterogenCoLtd.
Diversification Opportunities for Woori Technology and AnterogenCoLtd
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and AnterogenCoLtd is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and AnterogenCoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AnterogenCoLtd and Woori Technology 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 Woori Technology Investment are associated (or correlated) with AnterogenCoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AnterogenCoLtd has no effect on the direction of Woori Technology i.e., Woori Technology and AnterogenCoLtd go up and down completely randomly.
Pair Corralation between Woori Technology and AnterogenCoLtd
Assuming the 90 days trading horizon Woori Technology Investment is expected to under-perform the AnterogenCoLtd. But the stock apears to be less risky and, when comparing its historical volatility, Woori Technology Investment is 1.14 times less risky than AnterogenCoLtd. The stock trades about -0.03 of its potential returns per unit of risk. The AnterogenCoLtd is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,413,000 in AnterogenCoLtd on March 14, 2024 and sell it today you would earn a total of 120,000 from holding AnterogenCoLtd or generate 8.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.33% |
Values | Daily Returns |
Woori Technology Investment vs. AnterogenCoLtd
Performance |
Timeline |
Woori Technology Inv |
AnterogenCoLtd |
Woori Technology and AnterogenCoLtd Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Woori Technology and AnterogenCoLtd
The main advantage of trading using opposite Woori Technology and AnterogenCoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, AnterogenCoLtd 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 AnterogenCoLtd will offset losses from the drop in AnterogenCoLtd's long position.Woori Technology vs. Busan Industrial Co | Woori Technology vs. Finebesteel | Woori Technology vs. Shinhan Inverse WTI | Woori Technology vs. Fine Besteel Co |
AnterogenCoLtd vs. Busan Industrial Co | AnterogenCoLtd vs. Finebesteel | AnterogenCoLtd vs. Shinhan Inverse WTI | AnterogenCoLtd vs. Fine Besteel 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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