Correlation Between Woori Financial and ASTORY CoLtd
Can any of the company-specific risk be diversified away by investing in both Woori Financial and ASTORY CoLtd 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 ASTORY CoLtd 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 ASTORY CoLtd, you can compare the effects of market volatilities on Woori Financial and ASTORY CoLtd 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 ASTORY CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and ASTORY CoLtd.
Diversification Opportunities for Woori Financial and ASTORY CoLtd
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and ASTORY is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and ASTORY CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTORY 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 ASTORY CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTORY CoLtd has no effect on the direction of Woori Financial i.e., Woori Financial and ASTORY CoLtd go up and down completely randomly.
Pair Corralation between Woori Financial and ASTORY CoLtd
Assuming the 90 days trading horizon Woori Financial Group is expected to generate 0.23 times more return on investment than ASTORY CoLtd. However, Woori Financial Group is 4.26 times less risky than ASTORY CoLtd. It trades about 0.24 of its potential returns per unit of risk. ASTORY CoLtd is currently generating about -0.15 per unit of risk. If you would invest 1,539,000 in Woori Financial Group on October 28, 2024 and sell it today you would earn a total of 36,000 from holding Woori Financial Group or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. ASTORY CoLtd
Performance |
| Timeline |
| Woori Financial Group |
| ASTORY CoLtd |
Woori Financial and ASTORY CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and ASTORY CoLtd
The main advantage of trading using opposite Woori Financial and ASTORY CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, ASTORY CoLtd 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 ASTORY CoLtd will offset losses from the drop in ASTORY CoLtd's long position.| Woori Financial vs. Jin Air Co | Woori Financial vs. Atinum Investment Co | Woori Financial vs. NH Investment Securities | Woori Financial vs. E Investment Development |
| ASTORY CoLtd vs. Daishin Information Communications | ASTORY CoLtd vs. DRB Industrial Co | ASTORY CoLtd vs. Formetal Co | ASTORY CoLtd vs. Hanwha Life Insurance |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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