Correlation Between Woori Financial and Alkame Holdings
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Alkame Holdings 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 Woori Financial and Alkame Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woori Financial Group and Alkame Holdings, you can compare the effects of market volatilities on Woori Financial and Alkame Holdings 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 Woori Financial with a short position of Alkame Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Alkame Holdings.
Diversification Opportunities for Woori Financial and Alkame Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and Alkame is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Alkame Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkame Holdings and Woori 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 Woori Financial Group are associated (or correlated) with Alkame Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkame Holdings has no effect on the direction of Woori Financial i.e., Woori Financial and Alkame Holdings go up and down completely randomly.
Pair Corralation between Woori Financial and Alkame Holdings
If you would invest 0.01 in Alkame Holdings on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Alkame Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. Alkame Holdings
Performance |
| Timeline |
| Woori Financial Group |
| Alkame Holdings |
Woori Financial and Alkame Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Alkame Holdings
The main advantage of trading using opposite Woori Financial and Alkame Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Alkame Holdings 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 Alkame Holdings will offset losses from the drop in Alkame Holdings' long position.| Woori Financial vs. JPMorgan Chase Co | Woori Financial vs. Citigroup | Woori Financial vs. Wells Fargo | Woori Financial vs. Toronto Dominion Bank |
| Alkame Holdings vs. V Group | Alkame Holdings vs. Fbec Worldwide | Alkame Holdings vs. Hiru Corporation | Alkame Holdings vs. Bank of America |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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