Correlation Between WOORI FIN and Genertec Universal
Can any of the company-specific risk be diversified away by investing in both WOORI FIN and Genertec Universal 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 WOORI FIN and Genertec Universal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WOORI FIN GRP and Genertec Universal Medical, you can compare the effects of market volatilities on WOORI FIN and Genertec Universal 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 WOORI FIN with a short position of Genertec Universal. Check out your portfolio center. Please also check ongoing floating volatility patterns of WOORI FIN and Genertec Universal.
Diversification Opportunities for WOORI FIN and Genertec Universal
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WOORI and Genertec is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding WOORI FIN GRP and Genertec Universal Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genertec Universal and WOORI FIN 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 WOORI FIN GRP are associated (or correlated) with Genertec Universal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genertec Universal has no effect on the direction of WOORI FIN i.e., WOORI FIN and Genertec Universal go up and down completely randomly.
Pair Corralation between WOORI FIN and Genertec Universal
Assuming the 90 days trading horizon WOORI FIN GRP is expected to generate 1.26 times more return on investment than Genertec Universal. However, WOORI FIN is 1.26 times more volatile than Genertec Universal Medical. It trades about 0.03 of its potential returns per unit of risk. Genertec Universal Medical is currently generating about 0.02 per unit of risk. If you would invest 2,274 in WOORI FIN GRP on October 27, 2024 and sell it today you would earn a total of 746.00 from holding WOORI FIN GRP or generate 32.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.21% |
| Values | Daily Returns |
WOORI FIN GRP vs. Genertec Universal Medical
Performance |
| Timeline |
| WOORI FIN GRP |
| Genertec Universal |
WOORI FIN and Genertec Universal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WOORI FIN and Genertec Universal
The main advantage of trading using opposite WOORI FIN and Genertec Universal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WOORI FIN position performs unexpectedly, Genertec Universal 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 Genertec Universal will offset losses from the drop in Genertec Universal's long position.| WOORI FIN vs. Granite Construction | WOORI FIN vs. Penta Ocean Construction Co | WOORI FIN vs. Hanison Construction Holdings | WOORI FIN vs. FARM 51 GROUP |
| Genertec Universal vs. Jacquet Metal Service | Genertec Universal vs. Coeur Mining | Genertec Universal vs. Apollo Medical Holdings | Genertec Universal vs. Calibre Mining 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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