Correlation Between Woori Financial and Yura Tech
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Yura Tech 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 Yura Tech 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 Yura Tech Co, you can compare the effects of market volatilities on Woori Financial and Yura Tech 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 Yura Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Yura Tech.
Diversification Opportunities for Woori Financial and Yura Tech
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and Yura is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Yura Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yura Tech 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 Yura Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yura Tech has no effect on the direction of Woori Financial i.e., Woori Financial and Yura Tech go up and down completely randomly.
Pair Corralation between Woori Financial and Yura Tech
Assuming the 90 days trading horizon Woori Financial Group is expected to generate 0.69 times more return on investment than Yura Tech. However, Woori Financial Group is 1.45 times less risky than Yura Tech. It trades about 0.05 of its potential returns per unit of risk. Yura Tech Co is currently generating about 0.02 per unit of risk. If you would invest 1,327,521 in Woori Financial Group on November 8, 2024 and sell it today you would earn a total of 235,479 from holding Woori Financial Group or generate 17.74% 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. Yura Tech Co
Performance |
| Timeline |
| Woori Financial Group |
| Yura Tech |
Woori Financial and Yura Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Yura Tech
The main advantage of trading using opposite Woori Financial and Yura Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Yura Tech 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 Yura Tech will offset losses from the drop in Yura Tech's long position.| Woori Financial vs. WONIK Materials CoLtd | Woori Financial vs. Korean Drug Co | Woori Financial vs. PJ Metal Co | Woori Financial vs. National Plastic Co |
| Yura Tech vs. Lotte Non Life Insurance | Yura Tech vs. Aprogen Healthcare Games | Yura Tech vs. Shinhan Financial Group | Yura Tech vs. Chorokbaem Healthcare 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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