Correlation Between REVO INSURANCE and WOORI FIN
Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE 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 REVO INSURANCE and WOORI FIN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REVO INSURANCE SPA and WOORI FIN GRP, you can compare the effects of market volatilities on REVO INSURANCE 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 REVO INSURANCE with a short position of WOORI FIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and WOORI FIN.
Diversification Opportunities for REVO INSURANCE and WOORI FIN
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between REVO and WOORI is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA 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 REVO INSURANCE 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 REVO INSURANCE SPA 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 REVO INSURANCE i.e., REVO INSURANCE and WOORI FIN go up and down completely randomly.
Pair Corralation between REVO INSURANCE and WOORI FIN
Assuming the 90 days horizon REVO INSURANCE SPA is expected to generate 1.56 times more return on investment than WOORI FIN. However, REVO INSURANCE is 1.56 times more volatile than WOORI FIN GRP. It trades about 0.28 of its potential returns per unit of risk. WOORI FIN GRP is currently generating about 0.42 per unit of risk. If you would invest 998.00 in REVO INSURANCE SPA on September 3, 2024 and sell it today you would earn a total of 82.00 from holding REVO INSURANCE SPA or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
REVO INSURANCE SPA vs. WOORI FIN GRP
Performance |
| Timeline |
| REVO INSURANCE SPA |
| WOORI FIN GRP |
REVO INSURANCE and WOORI FIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with REVO INSURANCE and WOORI FIN
The main advantage of trading using opposite REVO INSURANCE and WOORI FIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE 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.| REVO INSURANCE vs. Diamondrock Hospitality Co | REVO INSURANCE vs. Mobilezone Holding AG | REVO INSURANCE vs. Cardinal Health | REVO INSURANCE vs. WillScot Mobile Mini |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |