Correlation Between Woori Financial and Vieworks
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Vieworks 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 Vieworks 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 Vieworks Co, you can compare the effects of market volatilities on Woori Financial and Vieworks 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 Vieworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Vieworks.
Diversification Opportunities for Woori Financial and Vieworks
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Vieworks is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Vieworks Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vieworks 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 Vieworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vieworks has no effect on the direction of Woori Financial i.e., Woori Financial and Vieworks go up and down completely randomly.
Pair Corralation between Woori Financial and Vieworks
Assuming the 90 days trading horizon Woori Financial Group is expected to generate 0.69 times more return on investment than Vieworks. However, Woori Financial Group is 1.44 times less risky than Vieworks. It trades about -0.07 of its potential returns per unit of risk. Vieworks Co is currently generating about -0.13 per unit of risk. If you would invest 1,611,000 in Woori Financial Group on September 13, 2024 and sell it today you would lose (48,000) from holding Woori Financial Group or give up 2.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Woori Financial Group vs. Vieworks Co
Performance |
| Timeline |
| Woori Financial Group |
| Vieworks |
Woori Financial and Vieworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Vieworks
The main advantage of trading using opposite Woori Financial and Vieworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Vieworks 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 Vieworks will offset losses from the drop in Vieworks' long position.| Woori Financial vs. Shinhan Financial Group | Woori Financial vs. Hana Financial | Woori Financial vs. KakaoBank Corp | Woori Financial vs. Industrial Bank |
| Vieworks vs. InBody CoLtd | Vieworks vs. Seegene | Vieworks vs. DIO Corporation | Vieworks vs. LEENO Industrial |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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