Correlation Between Sangsangin Investment and Woori Financial
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and Woori Financial 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 Sangsangin Investment and Woori Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and Woori Financial Group, you can compare the effects of market volatilities on Sangsangin Investment and Woori Financial 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 Sangsangin Investment with a short position of Woori Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and Woori Financial.
Diversification Opportunities for Sangsangin Investment and Woori Financial
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sangsangin and Woori is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and Woori Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woori Financial Group and Sangsangin Investment 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 Sangsangin Investment Securities are associated (or correlated) with Woori Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woori Financial Group has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and Woori Financial go up and down completely randomly.
Pair Corralation between Sangsangin Investment and Woori Financial
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to generate 0.78 times more return on investment than Woori Financial. However, Sangsangin Investment Securities is 1.28 times less risky than Woori Financial. It trades about 0.06 of its potential returns per unit of risk. Woori Financial Group is currently generating about -0.04 per unit of risk. If you would invest 42,600 in Sangsangin Investment Securities on October 15, 2024 and sell it today you would earn a total of 400.00 from holding Sangsangin Investment Securities or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. Woori Financial Group
Performance |
| Timeline |
| Sangsangin Investment |
| Woori Financial Group |
Sangsangin Investment and Woori Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and Woori Financial
The main advantage of trading using opposite Sangsangin Investment and Woori Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, Woori Financial 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 Financial will offset losses from the drop in Woori Financial's long position.| Sangsangin Investment vs. PlayD Co | Sangsangin Investment vs. PLAYWITH | Sangsangin Investment vs. LG Display Co | Sangsangin Investment vs. Hana Financial |
| Woori Financial vs. Ssangyong Materials Corp | Woori Financial vs. Green Cross Medical | Woori Financial vs. WONIK Materials CoLtd | Woori Financial vs. Union Materials Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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