Correlation Between Woori Financial and GlycoMimetics
Can any of the company-specific risk be diversified away by investing in both Woori Financial and GlycoMimetics 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 GlycoMimetics 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 GlycoMimetics, you can compare the effects of market volatilities on Woori Financial and GlycoMimetics 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 GlycoMimetics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and GlycoMimetics.
Diversification Opportunities for Woori Financial and GlycoMimetics
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Woori and GlycoMimetics is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and GlycoMimetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GlycoMimetics 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 GlycoMimetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GlycoMimetics has no effect on the direction of Woori Financial i.e., Woori Financial and GlycoMimetics go up and down completely randomly.
Pair Corralation between Woori Financial and GlycoMimetics
Allowing for the 90-day total investment horizon Woori Financial is expected to generate 54.02 times less return on investment than GlycoMimetics. But when comparing it to its historical volatility, Woori Financial Group is 33.81 times less risky than GlycoMimetics. It trades about 0.1 of its potential returns per unit of risk. GlycoMimetics is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 17.00 in GlycoMimetics on August 29, 2024 and sell it today you would earn a total of 15.00 from holding GlycoMimetics or generate 88.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. GlycoMimetics
Performance |
| Timeline |
| Woori Financial Group |
| GlycoMimetics |
Woori Financial and GlycoMimetics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and GlycoMimetics
The main advantage of trading using opposite Woori Financial and GlycoMimetics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, GlycoMimetics 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 GlycoMimetics will offset losses from the drop in GlycoMimetics' long position.| Woori Financial vs. Banco Santander Brasil | Woori Financial vs. CrossFirst Bankshares | Woori Financial vs. Banco Bradesco SA | Woori Financial vs. CF Bankshares |
| GlycoMimetics vs. Mineralys Therapeutics, Common | GlycoMimetics vs. Foghorn Therapeutics | GlycoMimetics vs. Inventiva Sa | GlycoMimetics vs. Dyne 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |