Correlation Between Woori Technology and Seegene
Can any of the company-specific risk be diversified away by investing in both Woori Technology and Seegene 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 Seegene 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 Seegene, you can compare the effects of market volatilities on Woori Technology and Seegene 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 Seegene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and Seegene.
Diversification Opportunities for Woori Technology and Seegene
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Seegene is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and Seegene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seegene 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 Seegene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seegene has no effect on the direction of Woori Technology i.e., Woori Technology and Seegene go up and down completely randomly.
Pair Corralation between Woori Technology and Seegene
Assuming the 90 days trading horizon Woori Technology is expected to generate 20.11 times less return on investment than Seegene. In addition to that, Woori Technology is 1.46 times more volatile than Seegene. It trades about 0.0 of its total potential returns per unit of risk. Seegene is currently generating about 0.04 per unit of volatility. If you would invest 2,354,614 in Seegene on October 21, 2024 and sell it today you would earn a total of 115,386 from holding Seegene or generate 4.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Woori Technology Investment vs. Seegene
Performance |
Timeline |
Woori Technology Inv |
Seegene |
Woori Technology and Seegene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Woori Technology and Seegene
The main advantage of trading using opposite Woori Technology and Seegene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, Seegene 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 Seegene will offset losses from the drop in Seegene's long position.Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV Co |
Seegene vs. Samsung Electronics Co | Seegene vs. Samsung Electronics Co | Seegene vs. SK Hynix | Seegene vs. SK Holdings 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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