Correlation Between Woori Technology and CKH Food
Can any of the company-specific risk be diversified away by investing in both Woori Technology and CKH Food 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 CKH Food 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 CKH Food Health, you can compare the effects of market volatilities on Woori Technology and CKH Food 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 CKH Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Technology and CKH Food.
Diversification Opportunities for Woori Technology and CKH Food
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and CKH is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Woori Technology Investment and CKH Food Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKH Food Health 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 CKH Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKH Food Health has no effect on the direction of Woori Technology i.e., Woori Technology and CKH Food go up and down completely randomly.
Pair Corralation between Woori Technology and CKH Food
Assuming the 90 days trading horizon Woori Technology Investment is expected to under-perform the CKH Food. In addition to that, Woori Technology is 1.53 times more volatile than CKH Food Health. It trades about -0.28 of its total potential returns per unit of risk. CKH Food Health is currently generating about -0.15 per unit of volatility. If you would invest 7,400 in CKH Food Health on September 25, 2024 and sell it today you would lose (700.00) from holding CKH Food Health or give up 9.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Woori Technology Investment vs. CKH Food Health
Performance |
Timeline |
Woori Technology Inv |
CKH Food Health |
Woori Technology and CKH Food Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Woori Technology and CKH Food
The main advantage of trading using opposite Woori Technology and CKH Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Technology position performs unexpectedly, CKH Food 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 CKH Food will offset losses from the drop in CKH Food's long position.Woori Technology vs. Humasis Co | Woori Technology vs. JUSUNG ENGINEERING Co | Woori Technology vs. Winix Inc | Woori Technology vs. AfreecaTV Co |
CKH Food vs. Cots Technology Co | CKH Food vs. Inzi Display CoLtd | CKH Food vs. Adaptive Plasma Technology | CKH Food vs. Puloon Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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