Correlation Between Woori Financial and Gilead Sciences
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Gilead Sciences 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 Gilead Sciences 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 Gilead Sciences, you can compare the effects of market volatilities on Woori Financial and Gilead Sciences 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 Gilead Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Gilead Sciences.
Diversification Opportunities for Woori Financial and Gilead Sciences
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Woori and Gilead is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Gilead Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gilead Sciences 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 Gilead Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gilead Sciences has no effect on the direction of Woori Financial i.e., Woori Financial and Gilead Sciences go up and down completely randomly.
Pair Corralation between Woori Financial and Gilead Sciences
Allowing for the 90-day total investment horizon Woori Financial is expected to generate 1.92 times less return on investment than Gilead Sciences. But when comparing it to its historical volatility, Woori Financial Group is 1.65 times less risky than Gilead Sciences. It trades about 0.1 of its potential returns per unit of risk. Gilead Sciences is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,808 in Gilead Sciences on August 30, 2024 and sell it today you would earn a total of 433.00 from holding Gilead Sciences or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. Gilead Sciences
Performance |
| Timeline |
| Woori Financial Group |
| Gilead Sciences |
Woori Financial and Gilead Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Gilead Sciences
The main advantage of trading using opposite Woori Financial and Gilead Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Gilead Sciences 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 Gilead Sciences will offset losses from the drop in Gilead Sciences' long position.| Woori Financial vs. JPMorgan Chase Co | Woori Financial vs. Citigroup | Woori Financial vs. Wells Fargo | Woori Financial vs. Toronto Dominion Bank |
| Gilead Sciences vs. Ikena Oncology | Gilead Sciences vs. Eliem Therapeutics | Gilead Sciences vs. HCW Biologics | Gilead Sciences vs. Tempest Therapeutics |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |