Correlation Between Woori Financial and Inzi Display
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Inzi Display 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 Inzi Display 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 Inzi Display CoLtd, you can compare the effects of market volatilities on Woori Financial and Inzi Display 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 Inzi Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Inzi Display.
Diversification Opportunities for Woori Financial and Inzi Display
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Inzi is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Inzi Display CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inzi Display CoLtd 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 Inzi Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inzi Display CoLtd has no effect on the direction of Woori Financial i.e., Woori Financial and Inzi Display go up and down completely randomly.
Pair Corralation between Woori Financial and Inzi Display
Assuming the 90 days trading horizon Woori Financial Group is expected to generate 1.34 times more return on investment than Inzi Display. However, Woori Financial is 1.34 times more volatile than Inzi Display CoLtd. It trades about 0.04 of its potential returns per unit of risk. Inzi Display CoLtd is currently generating about -0.33 per unit of risk. If you would invest 1,659,000 in Woori Financial Group on August 24, 2024 and sell it today you would earn a total of 20,000 from holding Woori Financial Group or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. Inzi Display CoLtd
Performance |
| Timeline |
| Woori Financial Group |
| Inzi Display CoLtd |
Woori Financial and Inzi Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Inzi Display
The main advantage of trading using opposite Woori Financial and Inzi Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Inzi Display 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 Inzi Display will offset losses from the drop in Inzi Display's long position.| Woori Financial vs. Shinhan Financial Group | Woori Financial vs. Hana Financial | Woori Financial vs. KakaoBank Corp | Woori Financial vs. Industrial Bank |
| Inzi Display vs. Korea Real Estate | Inzi Display vs. Korea Ratings Co | Inzi Display vs. IQuest Co | Inzi Display vs. Wonbang Tech Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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