Correlation Between Woori Financial and Bar Harbor
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Bar Harbor 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 Bar Harbor 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 Bar Harbor Bankshares, you can compare the effects of market volatilities on Woori Financial and Bar Harbor 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 Bar Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Bar Harbor.
Diversification Opportunities for Woori Financial and Bar Harbor
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Bar is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Bar Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bar Harbor Bankshares 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 Bar Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bar Harbor Bankshares has no effect on the direction of Woori Financial i.e., Woori Financial and Bar Harbor go up and down completely randomly.
Pair Corralation between Woori Financial and Bar Harbor
Allowing for the 90-day total investment horizon Woori Financial is expected to generate 1.12 times less return on investment than Bar Harbor. But when comparing it to its historical volatility, Woori Financial Group is 1.28 times less risky than Bar Harbor. It trades about 0.07 of its potential returns per unit of risk. Bar Harbor Bankshares is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,448 in Bar Harbor Bankshares on September 1, 2024 and sell it today you would earn a total of 1,151 from holding Bar Harbor Bankshares or generate 47.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. Bar Harbor Bankshares
Performance |
| Timeline |
| Woori Financial Group |
| Bar Harbor Bankshares |
Woori Financial and Bar Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Bar Harbor
The main advantage of trading using opposite Woori Financial and Bar Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Bar Harbor 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 Bar Harbor will offset losses from the drop in Bar Harbor's long position.| Woori Financial vs. Banco Santander Brasil | Woori Financial vs. CrossFirst Bankshares | Woori Financial vs. Banco Bradesco SA | Woori Financial vs. CF Bankshares |
| Bar Harbor vs. Camden National | Bar Harbor vs. Bank of Marin | Bar Harbor vs. Arrow Financial | Bar Harbor vs. Auburn National Bancorporation |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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