Correlation Between Postal Savings and WOORI FIN
Can any of the company-specific risk be diversified away by investing in both Postal Savings and WOORI FIN 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 Postal Savings and WOORI FIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postal Savings Bank and WOORI FIN GRP, you can compare the effects of market volatilities on Postal Savings and WOORI FIN 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 Postal Savings with a short position of WOORI FIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and WOORI FIN.
Diversification Opportunities for Postal Savings and WOORI FIN
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Postal and WOORI is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and WOORI FIN GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WOORI FIN GRP and Postal Savings 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 Postal Savings Bank are associated (or correlated) with WOORI FIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WOORI FIN GRP has no effect on the direction of Postal Savings i.e., Postal Savings and WOORI FIN go up and down completely randomly.
Pair Corralation between Postal Savings and WOORI FIN
Assuming the 90 days horizon Postal Savings Bank is expected to generate 2.33 times more return on investment than WOORI FIN. However, Postal Savings is 2.33 times more volatile than WOORI FIN GRP. It trades about 0.08 of its potential returns per unit of risk. WOORI FIN GRP is currently generating about 0.06 per unit of risk. If you would invest 20.00 in Postal Savings Bank on September 4, 2024 and sell it today you would earn a total of 33.00 from holding Postal Savings Bank or generate 165.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
Postal Savings Bank vs. WOORI FIN GRP
Performance |
| Timeline |
| Postal Savings Bank |
| WOORI FIN GRP |
Postal Savings and WOORI FIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and WOORI FIN
The main advantage of trading using opposite Postal Savings and WOORI FIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, WOORI FIN 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 WOORI FIN will offset losses from the drop in WOORI FIN's long position.| Postal Savings vs. CAIXABANK UNADR 13 | Postal Savings vs. Superior Plus Corp | Postal Savings vs. NMI Holdings | Postal Savings vs. Origin Agritech |
| WOORI FIN vs. Postal Savings Bank | WOORI FIN vs. CAIXABANK UNADR 13 | WOORI FIN vs. Superior Plus Corp | WOORI FIN vs. NMI Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |