Correlation Between Woori Financial and PNC Technologies
Can any of the company-specific risk be diversified away by investing in both Woori Financial and PNC Technologies 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 PNC Technologies 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 PNC Technologies co, you can compare the effects of market volatilities on Woori Financial and PNC Technologies 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 PNC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and PNC Technologies.
Diversification Opportunities for Woori Financial and PNC Technologies
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Woori and PNC is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and PNC Technologies co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNC Technologies 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 PNC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNC Technologies has no effect on the direction of Woori Financial i.e., Woori Financial and PNC Technologies go up and down completely randomly.
Pair Corralation between Woori Financial and PNC Technologies
Assuming the 90 days trading horizon Woori Financial Group is expected to generate 0.65 times more return on investment than PNC Technologies. However, Woori Financial Group is 1.53 times less risky than PNC Technologies. It trades about 0.06 of its potential returns per unit of risk. PNC Technologies co is currently generating about -0.05 per unit of risk. If you would invest 1,286,076 in Woori Financial Group on October 14, 2024 and sell it today you would earn a total of 263,924 from holding Woori Financial Group or generate 20.52% 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. PNC Technologies co
Performance |
| Timeline |
| Woori Financial Group |
| PNC Technologies |
Woori Financial and PNC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and PNC Technologies
The main advantage of trading using opposite Woori Financial and PNC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, PNC Technologies 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 PNC Technologies will offset losses from the drop in PNC Technologies' long position.| Woori Financial vs. Daejung Chemicals Metals | Woori Financial vs. Namhwa Industrial Co | Woori Financial vs. Industrial Bank | Woori Financial vs. Kukil Metal Co |
| PNC Technologies vs. DoubleU Games Co | PNC Technologies vs. Woori Financial Group | PNC Technologies vs. Koryo Credit Information | PNC Technologies vs. KB 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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