Correlation Between Woori Financial and Blue Ridge
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Blue Ridge 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 Blue Ridge 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 Blue Ridge Bankshares, you can compare the effects of market volatilities on Woori Financial and Blue Ridge 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 Blue Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Blue Ridge.
Diversification Opportunities for Woori Financial and Blue Ridge
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Blue is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Blue Ridge Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Ridge 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 Blue Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Ridge Bankshares has no effect on the direction of Woori Financial i.e., Woori Financial and Blue Ridge go up and down completely randomly.
Pair Corralation between Woori Financial and Blue Ridge
Allowing for the 90-day total investment horizon Woori Financial Group is expected to under-perform the Blue Ridge. But the stock apears to be less risky and, when comparing its historical volatility, Woori Financial Group is 1.61 times less risky than Blue Ridge. The stock trades about 0.0 of its potential returns per unit of risk. The Blue Ridge Bankshares is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 282.00 in Blue Ridge Bankshares on August 25, 2024 and sell it today you would earn a total of 73.00 from holding Blue Ridge Bankshares or generate 25.89% 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. Blue Ridge Bankshares
Performance |
| Timeline |
| Woori Financial Group |
| Blue Ridge Bankshares |
Woori Financial and Blue Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Blue Ridge
The main advantage of trading using opposite Woori Financial and Blue Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Blue Ridge 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 Blue Ridge will offset losses from the drop in Blue Ridge'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 |
| Blue Ridge vs. LINKBANCORP | Blue Ridge vs. Colony Bankcorp | Blue Ridge vs. Bankwell Financial Group | Blue Ridge vs. ECB Bancorp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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