Correlation Between Axos Financial and Woori Financial
Can any of the company-specific risk be diversified away by investing in both Axos Financial and Woori Financial 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 Axos Financial and Woori Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and Woori Financial Group, you can compare the effects of market volatilities on Axos Financial and Woori Financial 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 Axos Financial with a short position of Woori Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and Woori Financial.
Diversification Opportunities for Axos Financial and Woori Financial
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Axos and Woori is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and Woori Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woori Financial Group and Axos 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 Axos Financial are associated (or correlated) with Woori Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woori Financial Group has no effect on the direction of Axos Financial i.e., Axos Financial and Woori Financial go up and down completely randomly.
Pair Corralation between Axos Financial and Woori Financial
Allowing for the 90-day total investment horizon Axos Financial is expected to generate 1.38 times more return on investment than Woori Financial. However, Axos Financial is 1.38 times more volatile than Woori Financial Group. It trades about 0.06 of its potential returns per unit of risk. Woori Financial Group is currently generating about 0.06 per unit of risk. If you would invest 5,186 in Axos Financial on November 9, 2024 and sell it today you would earn a total of 2,124 from holding Axos Financial or generate 40.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. Woori Financial Group
Performance |
| Timeline |
| Axos Financial |
| Woori Financial Group |
Axos Financial and Woori Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and Woori Financial
The main advantage of trading using opposite Axos Financial and Woori Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial position performs unexpectedly, Woori Financial 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 Financial will offset losses from the drop in Woori Financial's long position.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
| Woori Financial vs. Shinhan Financial Group | Woori Financial vs. KB Financial Group | Woori Financial vs. Banco De Chile | Woori Financial vs. Orix Corp Ads |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |