Correlation Between WOORI FIN and Whirlpool
Can any of the company-specific risk be diversified away by investing in both WOORI FIN and Whirlpool 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 Whirlpool 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 Whirlpool, you can compare the effects of market volatilities on WOORI FIN and Whirlpool 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 Whirlpool. Check out your portfolio center. Please also check ongoing floating volatility patterns of WOORI FIN and Whirlpool.
Diversification Opportunities for WOORI FIN and Whirlpool
Very good diversification
The 3 months correlation between WOORI and Whirlpool is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding WOORI FIN GRP and Whirlpool in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whirlpool 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 Whirlpool. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whirlpool has no effect on the direction of WOORI FIN i.e., WOORI FIN and Whirlpool go up and down completely randomly.
Pair Corralation between WOORI FIN and Whirlpool
Assuming the 90 days trading horizon WOORI FIN GRP is expected to generate 0.27 times more return on investment than Whirlpool. However, WOORI FIN GRP is 3.65 times less risky than Whirlpool. It trades about 0.11 of its potential returns per unit of risk. Whirlpool is currently generating about -0.03 per unit of risk. If you would invest 2,900 in WOORI FIN GRP on November 2, 2024 and sell it today you would earn a total of 80.00 from holding WOORI FIN GRP or generate 2.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
WOORI FIN GRP vs. Whirlpool
Performance |
| Timeline |
| WOORI FIN GRP |
| Whirlpool |
WOORI FIN and Whirlpool Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WOORI FIN and Whirlpool
The main advantage of trading using opposite WOORI FIN and Whirlpool positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WOORI FIN position performs unexpectedly, Whirlpool 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 Whirlpool will offset losses from the drop in Whirlpool's long position.| WOORI FIN vs. ECHO INVESTMENT ZY | WOORI FIN vs. CHRYSALIS INVESTMENTS LTD | WOORI FIN vs. Apollo Investment Corp | WOORI FIN vs. Scottish Mortgage Investment |
| Whirlpool vs. China Resources Beer | Whirlpool vs. MOLSON RS BEVERAGE | Whirlpool vs. Tsingtao Brewery | Whirlpool vs. THAI BEVERAGE |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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