Correlation Between Intellian Technologies and Woori Technology

Can any of the company-specific risk be diversified away by investing in both Intellian Technologies and Woori Technology 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 Intellian Technologies and Woori Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intellian Technologies and Woori Technology Investment, you can compare the effects of market volatilities on Intellian Technologies and Woori Technology 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 Intellian Technologies with a short position of Woori Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellian Technologies and Woori Technology.

Diversification Opportunities for Intellian Technologies and Woori Technology

0.24

Correlation Coefficient

Intellian Technologies  Woori Technology

Modest diversification

The 3 months correlation between Intellian and Woori is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Intellian Technologies and Woori Technology Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woori Technology Inv and Intellian Technologies 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 Intellian Technologies are associated (or correlated) with Woori Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woori Technology Inv has no effect on the direction of Intellian Technologies i.e., Intellian Technologies and Woori Technology go up and down completely randomly.

Pair Corralation between Intellian Technologies and Woori Technology

Assuming the 90 days trading horizon Intellian Technologies is expected to generate 0.51 times more return on investment than Woori Technology. However, Intellian Technologies is 1.94 times less risky than Woori Technology. It trades about 0.08 of its potential returns per unit of risk. Woori Technology Investment is currently generating about 0.01 per unit of risk. If you would invest  3,700,107  in Intellian Technologies on October 11, 2024 and sell it today you would earn a total of  99,893  from holding Intellian Technologies or generate 2.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Intellian Technologies  vs.  Woori Technology Investment

Intellian Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intellian Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Woori Technology Inv

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Woori Technology Investment are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Woori Technology sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intellian Technologies and Woori Technology

The main advantage of trading using opposite Intellian Technologies and Woori Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellian Technologies position performs unexpectedly, Woori Technology 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 Woori Technology will offset losses from the drop in Woori Technology's long position.

The idea behind Intellian Technologies and Woori Technology Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.