Correlation Between Hanil Iron and Woori Financial
Can any of the company-specific risk be diversified away by investing in both Hanil Iron 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 Hanil Iron and Woori Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanil Iron Steel and Woori Financial Group, you can compare the effects of market volatilities on Hanil Iron 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 Hanil Iron with a short position of Woori Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanil Iron and Woori Financial.
Diversification Opportunities for Hanil Iron and Woori Financial
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hanil and Woori is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hanil Iron Steel 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 Hanil Iron 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 Hanil Iron Steel 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 Hanil Iron i.e., Hanil Iron and Woori Financial go up and down completely randomly.
Pair Corralation between Hanil Iron and Woori Financial
Assuming the 90 days trading horizon Hanil Iron Steel is expected to under-perform the Woori Financial. In addition to that, Hanil Iron is 1.21 times more volatile than Woori Financial Group. It trades about -0.04 of its total potential returns per unit of risk. Woori Financial Group is currently generating about 0.07 per unit of volatility. If you would invest 1,060,581 in Woori Financial Group on September 4, 2024 and sell it today you would earn a total of 634,419 from holding Woori Financial Group or generate 59.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanil Iron Steel vs. Woori Financial Group
Performance |
| Timeline |
| Hanil Iron Steel |
| Woori Financial Group |
Hanil Iron and Woori Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanil Iron and Woori Financial
The main advantage of trading using opposite Hanil Iron and Woori Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanil Iron 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.| Hanil Iron vs. AptaBio Therapeutics | Hanil Iron vs. Daewoo SBI SPAC | Hanil Iron vs. Dream Security co | Hanil Iron vs. Microfriend |
| Woori Financial vs. Orbitech Co | Woori Financial vs. Cots Technology Co | Woori Financial vs. QUALITAS SEMICONDUCTOR LTD | Woori Financial vs. Hankukpackage 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |