Correlation Between Woori Financial and CFSB Bancorp
Can any of the company-specific risk be diversified away by investing in both Woori Financial and CFSB Bancorp 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 CFSB Bancorp 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 CFSB Bancorp, you can compare the effects of market volatilities on Woori Financial and CFSB Bancorp 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 CFSB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and CFSB Bancorp.
Diversification Opportunities for Woori Financial and CFSB Bancorp
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and CFSB is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and CFSB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CFSB Bancorp 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 CFSB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CFSB Bancorp has no effect on the direction of Woori Financial i.e., Woori Financial and CFSB Bancorp go up and down completely randomly.
Pair Corralation between Woori Financial and CFSB Bancorp
Allowing for the 90-day total investment horizon Woori Financial Group is expected to generate 0.8 times more return on investment than CFSB Bancorp. However, Woori Financial Group is 1.25 times less risky than CFSB Bancorp. It trades about 0.06 of its potential returns per unit of risk. CFSB Bancorp is currently generating about -0.01 per unit of risk. If you would invest 2,383 in Woori Financial Group on September 3, 2024 and sell it today you would earn a total of 1,191 from holding Woori Financial Group or generate 49.98% 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. CFSB Bancorp
Performance |
| Timeline |
| Woori Financial Group |
| CFSB Bancorp |
Woori Financial and CFSB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and CFSB Bancorp
The main advantage of trading using opposite Woori Financial and CFSB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, CFSB Bancorp 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 CFSB Bancorp will offset losses from the drop in CFSB Bancorp's 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 |
| CFSB Bancorp vs. IF Bancorp | CFSB Bancorp vs. Home Bancorp | CFSB Bancorp vs. Commerzbank AG PK | CFSB Bancorp vs. ConnectOne 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |