Correlation Between Woori Financial and Fulton Financial
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Fulton Financial 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 Fulton Financial 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 Fulton Financial, you can compare the effects of market volatilities on Woori Financial and Fulton Financial 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 Fulton Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Fulton Financial.
Diversification Opportunities for Woori Financial and Fulton Financial
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Fulton is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Fulton Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulton Financial 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 Fulton Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulton Financial has no effect on the direction of Woori Financial i.e., Woori Financial and Fulton Financial go up and down completely randomly.
Pair Corralation between Woori Financial and Fulton Financial
Allowing for the 90-day total investment horizon Woori Financial Group is expected to generate 1.29 times more return on investment than Fulton Financial. However, Woori Financial is 1.29 times more volatile than Fulton Financial. It trades about 0.06 of its potential returns per unit of risk. Fulton Financial is currently generating about 0.03 per unit of risk. If you would invest 2,331 in Woori Financial Group on August 24, 2024 and sell it today you would earn a total of 1,264 from holding Woori Financial Group or generate 54.23% 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. Fulton Financial
Performance |
| Timeline |
| Woori Financial Group |
| Fulton Financial |
Woori Financial and Fulton Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Fulton Financial
The main advantage of trading using opposite Woori Financial and Fulton Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Fulton Financial 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 Fulton Financial will offset losses from the drop in Fulton Financial's long position.| Woori Financial vs. Banco Bradesco SA | Woori Financial vs. Itau Unibanco Banco | Woori Financial vs. Banco Santander Brasil | Woori Financial vs. Western Alliance Bancorporation |
| Fulton Financial vs. First Citizens BancShares | Fulton Financial vs. Fifth Third Bancorp | Fulton Financial vs. Dime Community Bancshares | Fulton Financial vs. Heartland Financial USA |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |