Correlation Between Woori Financial and Daesung Private
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Daesung Private 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 Daesung Private 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 Daesung Private Equity, you can compare the effects of market volatilities on Woori Financial and Daesung Private 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 Daesung Private. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Daesung Private.
Diversification Opportunities for Woori Financial and Daesung Private
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Woori and Daesung is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Daesung Private Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daesung Private Equity 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 Daesung Private. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daesung Private Equity has no effect on the direction of Woori Financial i.e., Woori Financial and Daesung Private go up and down completely randomly.
Pair Corralation between Woori Financial and Daesung Private
Assuming the 90 days trading horizon Woori Financial Group is expected to generate 0.31 times more return on investment than Daesung Private. However, Woori Financial Group is 3.26 times less risky than Daesung Private. It trades about 0.41 of its potential returns per unit of risk. Daesung Private Equity is currently generating about -0.03 per unit of risk. If you would invest 1,529,000 in Woori Financial Group on November 3, 2024 and sell it today you would earn a total of 81,000 from holding Woori Financial Group or generate 5.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. Daesung Private Equity
Performance |
| Timeline |
| Woori Financial Group |
| Daesung Private Equity |
Woori Financial and Daesung Private Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Daesung Private
The main advantage of trading using opposite Woori Financial and Daesung Private positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Daesung Private 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 Daesung Private will offset losses from the drop in Daesung Private's long position.| Woori Financial vs. PJ Metal Co | Woori Financial vs. Dongil Metal Co | Woori Financial vs. Clean Science co | Woori Financial vs. Alton Sports CoLtd |
| Daesung Private vs. GS Retail Co | Daesung Private vs. Ssangyong Materials Corp | Daesung Private vs. Kolon Plastics | Daesung Private vs. Ecoplastic |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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