Correlation Between Woori Financial and CAVU Resources
Can any of the company-specific risk be diversified away by investing in both Woori Financial and CAVU Resources 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 CAVU Resources 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 CAVU Resources, you can compare the effects of market volatilities on Woori Financial and CAVU Resources 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 CAVU Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and CAVU Resources.
Diversification Opportunities for Woori Financial and CAVU Resources
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and CAVU is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and CAVU Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVU Resources 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 CAVU Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVU Resources has no effect on the direction of Woori Financial i.e., Woori Financial and CAVU Resources go up and down completely randomly.
Pair Corralation between Woori Financial and CAVU Resources
Allowing for the 90-day total investment horizon Woori Financial Group is expected to under-perform the CAVU Resources. But the stock apears to be less risky and, when comparing its historical volatility, Woori Financial Group is 8.36 times less risky than CAVU Resources. The stock trades about 0.0 of its potential returns per unit of risk. The CAVU Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.06 in CAVU Resources on September 2, 2024 and sell it today you would lose (0.02) from holding CAVU Resources or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. CAVU Resources
Performance |
| Timeline |
| Woori Financial Group |
| CAVU Resources |
Woori Financial and CAVU Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and CAVU Resources
The main advantage of trading using opposite Woori Financial and CAVU Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, CAVU Resources 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 CAVU Resources will offset losses from the drop in CAVU Resources' long position.| Woori Financial vs. Shinhan Financial Group | Woori Financial vs. KB Financial Group | Woori Financial vs. Banco De Chile | Woori Financial vs. Orix Corp Ads |
| CAVU Resources vs. BHPA Inc | CAVU Resources vs. CXApp Inc | CAVU Resources vs. Hello Pal International | CAVU Resources vs. Coinsilium Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |