Correlation Between WOORI FIN and Kroger
Can any of the company-specific risk be diversified away by investing in both WOORI FIN and Kroger 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 Kroger 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 The Kroger Co, you can compare the effects of market volatilities on WOORI FIN and Kroger 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 Kroger. Check out your portfolio center. Please also check ongoing floating volatility patterns of WOORI FIN and Kroger.
Diversification Opportunities for WOORI FIN and Kroger
Good diversification
The 3 months correlation between WOORI and Kroger is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding WOORI FIN GRP and The Kroger Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Kroger 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 Kroger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Kroger has no effect on the direction of WOORI FIN i.e., WOORI FIN and Kroger go up and down completely randomly.
Pair Corralation between WOORI FIN and Kroger
Assuming the 90 days trading horizon WOORI FIN GRP is expected to generate 0.84 times more return on investment than Kroger. However, WOORI FIN GRP is 1.19 times less risky than Kroger. It trades about 0.01 of its potential returns per unit of risk. The Kroger Co is currently generating about -0.21 per unit of risk. If you would invest 2,960 in WOORI FIN GRP on October 24, 2024 and sell it today you would earn a total of 0.00 from holding WOORI FIN GRP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WOORI FIN GRP vs. The Kroger Co
Performance |
| Timeline |
| WOORI FIN GRP |
| The Kroger |
WOORI FIN and Kroger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WOORI FIN and Kroger
The main advantage of trading using opposite WOORI FIN and Kroger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WOORI FIN position performs unexpectedly, Kroger 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 Kroger will offset losses from the drop in Kroger's long position.| WOORI FIN vs. REVO INSURANCE SPA | WOORI FIN vs. Carnegie Clean Energy | WOORI FIN vs. QBE Insurance Group | WOORI FIN vs. VIENNA INSURANCE GR |
| Kroger vs. National Health Investors | Kroger vs. Broadcom | Kroger vs. BII Railway Transportation | Kroger vs. TRAINLINE PLC LS |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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