Correlation Between Woori Financial and Atinum Investment
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Atinum Investment 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 Financial and Atinum Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woori Financial Group and Atinum Investment Co, you can compare the effects of market volatilities on Woori Financial and Atinum Investment 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 Financial with a short position of Atinum Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Atinum Investment.
Diversification Opportunities for Woori Financial and Atinum Investment
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Woori and Atinum is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Atinum Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atinum Investment and Woori Financial 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 Financial Group are associated (or correlated) with Atinum Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atinum Investment has no effect on the direction of Woori Financial i.e., Woori Financial and Atinum Investment go up and down completely randomly.
Pair Corralation between Woori Financial and Atinum Investment
Assuming the 90 days trading horizon Woori Financial Group is expected to generate 0.6 times more return on investment than Atinum Investment. However, Woori Financial Group is 1.66 times less risky than Atinum Investment. It trades about 0.06 of its potential returns per unit of risk. Atinum Investment Co is currently generating about 0.0 per unit of risk. If you would invest 1,068,866 in Woori Financial Group on September 12, 2024 and sell it today you would earn a total of 475,134 from holding Woori Financial Group or generate 44.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. Atinum Investment Co
Performance |
| Timeline |
| Woori Financial Group |
| Atinum Investment |
Woori Financial and Atinum Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Atinum Investment
The main advantage of trading using opposite Woori Financial and Atinum Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Atinum Investment 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 Atinum Investment will offset losses from the drop in Atinum Investment's long position.| Woori Financial vs. DB Insurance Co | Woori Financial vs. Pureun Mutual Savings | Woori Financial vs. Shinhan Financial Group | Woori Financial vs. iNtRON Biotechnology |
| Atinum Investment vs. KB Financial Group | Atinum Investment vs. Shinhan Financial Group | Atinum Investment vs. Hana Financial | Atinum Investment vs. Woori Financial Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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