Correlation Between Woori Financial and Bounce Mobile
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Bounce Mobile 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 Bounce Mobile 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 Bounce Mobile Systems, you can compare the effects of market volatilities on Woori Financial and Bounce Mobile 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 Bounce Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Bounce Mobile.
Diversification Opportunities for Woori Financial and Bounce Mobile
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Woori and Bounce is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Bounce Mobile Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bounce Mobile Systems 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 Bounce Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bounce Mobile Systems has no effect on the direction of Woori Financial i.e., Woori Financial and Bounce Mobile go up and down completely randomly.
Pair Corralation between Woori Financial and Bounce Mobile
Allowing for the 90-day total investment horizon Woori Financial is expected to generate 2.82 times less return on investment than Bounce Mobile. But when comparing it to its historical volatility, Woori Financial Group is 19.57 times less risky than Bounce Mobile. It trades about 0.26 of its potential returns per unit of risk. Bounce Mobile Systems is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1.77 in Bounce Mobile Systems on November 4, 2024 and sell it today you would lose (0.12) from holding Bounce Mobile Systems or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Woori Financial Group vs. Bounce Mobile Systems
Performance |
| Timeline |
| Woori Financial Group |
| Bounce Mobile Systems |
Woori Financial and Bounce Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Bounce Mobile
The main advantage of trading using opposite Woori Financial and Bounce Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Bounce Mobile 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 Bounce Mobile will offset losses from the drop in Bounce Mobile's long position.| Woori Financial vs. Shinhan Financial Group | Woori Financial vs. Korea Electric Power | Woori Financial vs. Orix Corp Ads | Woori Financial vs. SK Telecom Co |
| Bounce Mobile vs. Limitless Venture | Bounce Mobile vs. Guardian Capital Group | Bounce Mobile vs. Princeton Capital | Bounce Mobile vs. SMC Entertainment |
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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