Correlation Between Pureun Mutual and Woori Financial
Can any of the company-specific risk be diversified away by investing in both Pureun Mutual 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 Pureun Mutual and Woori Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pureun Mutual Savings and Woori Financial Group, you can compare the effects of market volatilities on Pureun Mutual 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 Pureun Mutual with a short position of Woori Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pureun Mutual and Woori Financial.
Diversification Opportunities for Pureun Mutual and Woori Financial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Pureun and Woori is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Pureun Mutual Savings 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 Pureun Mutual 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 Pureun Mutual Savings 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 Pureun Mutual i.e., Pureun Mutual and Woori Financial go up and down completely randomly.
Pair Corralation between Pureun Mutual and Woori Financial
Assuming the 90 days trading horizon Pureun Mutual is expected to generate 6.68 times less return on investment than Woori Financial. But when comparing it to its historical volatility, Pureun Mutual Savings is 1.61 times less risky than Woori Financial. It trades about 0.05 of its potential returns per unit of risk. Woori Financial Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,590,000 in Woori Financial Group on August 31, 2024 and sell it today you would earn a total of 90,000 from holding Woori Financial Group or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pureun Mutual Savings vs. Woori Financial Group
Performance |
| Timeline |
| Pureun Mutual Savings |
| Woori Financial Group |
Pureun Mutual and Woori Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pureun Mutual and Woori Financial
The main advantage of trading using opposite Pureun Mutual and Woori Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pureun Mutual 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.| Pureun Mutual vs. Samsung Electronics Co | Pureun Mutual vs. Samsung Electronics Co | Pureun Mutual vs. KB Financial Group | Pureun Mutual vs. Shinhan Financial Group |
| Woori Financial vs. Koryo Credit Information | Woori Financial vs. Korea Air Svc | Woori Financial vs. Moadata Co | Woori Financial vs. Samick Musical Instruments |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |