Correlation Between Daishin Information and Woori Financial
Can any of the company-specific risk be diversified away by investing in both Daishin Information 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 Daishin Information and Woori Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daishin Information Communications and Woori Financial Group, you can compare the effects of market volatilities on Daishin Information 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 Daishin Information with a short position of Woori Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daishin Information and Woori Financial.
Diversification Opportunities for Daishin Information and Woori Financial
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Daishin and Woori is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Daishin Information Communicat 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 Daishin Information 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 Daishin Information Communications 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 Daishin Information i.e., Daishin Information and Woori Financial go up and down completely randomly.
Pair Corralation between Daishin Information and Woori Financial
Assuming the 90 days trading horizon Daishin Information is expected to generate 19.47 times less return on investment than Woori Financial. In addition to that, Daishin Information is 1.44 times more volatile than Woori Financial Group. It trades about 0.01 of its total potential returns per unit of risk. Woori Financial Group is currently generating about 0.22 per unit of volatility. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daishin Information Communicat vs. Woori Financial Group
Performance |
| Timeline |
| Daishin Information |
| Woori Financial Group |
Daishin Information and Woori Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daishin Information and Woori Financial
The main advantage of trading using opposite Daishin Information and Woori Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daishin Information 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.| Daishin Information vs. Samyung Trading Co | Daishin Information vs. DSC Investment | Daishin Information vs. Atinum Investment Co | Daishin Information vs. EBEST Investment Securities |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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