Correlation Between Carnegie Clean and WOORI FIN
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean 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 Carnegie Clean and WOORI FIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and WOORI FIN GRP, you can compare the effects of market volatilities on Carnegie Clean 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 Carnegie Clean with a short position of WOORI FIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and WOORI FIN.
Diversification Opportunities for Carnegie Clean and WOORI FIN
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Carnegie and WOORI is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy 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 Carnegie Clean 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 Carnegie Clean Energy 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 Carnegie Clean i.e., Carnegie Clean and WOORI FIN go up and down completely randomly.
Pair Corralation between Carnegie Clean and WOORI FIN
Assuming the 90 days trading horizon Carnegie Clean is expected to generate 1.06 times less return on investment than WOORI FIN. In addition to that, Carnegie Clean is 4.3 times more volatile than WOORI FIN GRP. It trades about 0.04 of its total potential returns per unit of risk. WOORI FIN GRP is currently generating about 0.19 per unit of volatility. If you would invest 2,900 in WOORI FIN GRP on November 3, 2024 and sell it today you would earn a total of 160.00 from holding WOORI FIN GRP or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. WOORI FIN GRP
Performance |
| Timeline |
| Carnegie Clean Energy |
| WOORI FIN GRP |
Carnegie Clean and WOORI FIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and WOORI FIN
The main advantage of trading using opposite Carnegie Clean and WOORI FIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean 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.| Carnegie Clean vs. China Resources Power | Carnegie Clean vs. NRG Energy | Carnegie Clean vs. Superior Plus Corp | Carnegie Clean vs. Origin Agritech |
| WOORI FIN vs. STORE ELECTRONIC | WOORI FIN vs. Soken Chemical Engineering | WOORI FIN vs. Samsung Electronics Co | WOORI FIN vs. KINGBOARD CHEMICAL |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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