Correlation Between Wonbang Tech and YeSUN Tech
Can any of the company-specific risk be diversified away by investing in both Wonbang Tech and YeSUN Tech 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 Wonbang Tech and YeSUN Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wonbang Tech Co and YeSUN Tech CoLtd, you can compare the effects of market volatilities on Wonbang Tech and YeSUN Tech 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 Wonbang Tech with a short position of YeSUN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonbang Tech and YeSUN Tech.
Diversification Opportunities for Wonbang Tech and YeSUN Tech
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wonbang and YeSUN is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Wonbang Tech Co and YeSUN Tech CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YeSUN Tech CoLtd and Wonbang Tech 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 Wonbang Tech Co are associated (or correlated) with YeSUN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YeSUN Tech CoLtd has no effect on the direction of Wonbang Tech i.e., Wonbang Tech and YeSUN Tech go up and down completely randomly.
Pair Corralation between Wonbang Tech and YeSUN Tech
Assuming the 90 days trading horizon Wonbang Tech Co is expected to generate 0.98 times more return on investment than YeSUN Tech. However, Wonbang Tech Co is 1.02 times less risky than YeSUN Tech. It trades about 0.04 of its potential returns per unit of risk. YeSUN Tech CoLtd is currently generating about -0.03 per unit of risk. If you would invest 1,240,000 in Wonbang Tech Co on January 29, 2024 and sell it today you would earn a total of 564,000 from holding Wonbang Tech Co or generate 45.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Wonbang Tech Co vs. YeSUN Tech CoLtd
Performance |
Timeline |
Wonbang Tech |
YeSUN Tech CoLtd |
Wonbang Tech and YeSUN Tech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wonbang Tech and YeSUN Tech
The main advantage of trading using opposite Wonbang Tech and YeSUN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonbang Tech position performs unexpectedly, YeSUN Tech 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 YeSUN Tech will offset losses from the drop in YeSUN Tech's long position.Wonbang Tech vs. Samsung Electronics Co | Wonbang Tech vs. Samsung Electronics Co | Wonbang Tech vs. LG Energy Solution | Wonbang Tech vs. SK Hynix |
YeSUN Tech vs. Sungdo Engineering Construction | YeSUN Tech vs. Seoam Machinery Industry | YeSUN Tech vs. Digital Power Communications | YeSUN Tech vs. Dongbang Ship Machinery |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |