Correlation Between Eagle Bancorp and Woori Financial
Can any of the company-specific risk be diversified away by investing in both Eagle Bancorp 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 Eagle Bancorp and Woori Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Bancorp and Woori Financial Group, you can compare the effects of market volatilities on Eagle Bancorp 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 Eagle Bancorp with a short position of Woori Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Bancorp and Woori Financial.
Diversification Opportunities for Eagle Bancorp and Woori Financial
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagle and Woori is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Bancorp 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 Eagle Bancorp 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 Eagle Bancorp 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 Eagle Bancorp i.e., Eagle Bancorp and Woori Financial go up and down completely randomly.
Pair Corralation between Eagle Bancorp and Woori Financial
Given the investment horizon of 90 days Eagle Bancorp is expected to generate 1.79 times more return on investment than Woori Financial. However, Eagle Bancorp is 1.79 times more volatile than Woori Financial Group. It trades about 0.17 of its potential returns per unit of risk. Woori Financial Group is currently generating about 0.0 per unit of risk. If you would invest 2,136 in Eagle Bancorp on August 31, 2024 and sell it today you would earn a total of 809.00 from holding Eagle Bancorp or generate 37.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Bancorp vs. Woori Financial Group
Performance |
| Timeline |
| Eagle Bancorp |
| Woori Financial Group |
Eagle Bancorp and Woori Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Bancorp and Woori Financial
The main advantage of trading using opposite Eagle Bancorp and Woori Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Bancorp 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.| Eagle Bancorp vs. Peoples Bancorp | Eagle Bancorp vs. Northrim BanCorp | Eagle Bancorp vs. United Bankshares | Eagle Bancorp vs. Pacific Premier 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |