Correlation Between Woori Financial and Harpoon Therapeutics
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Harpoon Therapeutics 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 Harpoon Therapeutics 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 Harpoon Therapeutics, you can compare the effects of market volatilities on Woori Financial and Harpoon Therapeutics 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 Harpoon Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Harpoon Therapeutics.
Diversification Opportunities for Woori Financial and Harpoon Therapeutics
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Harpoon is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Harpoon Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harpoon Therapeutics 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 Harpoon Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harpoon Therapeutics has no effect on the direction of Woori Financial i.e., Woori Financial and Harpoon Therapeutics go up and down completely randomly.
Pair Corralation between Woori Financial and Harpoon Therapeutics
Allowing for the 90-day total investment horizon Woori Financial is expected to generate 5.38 times less return on investment than Harpoon Therapeutics. But when comparing it to its historical volatility, Woori Financial Group is 1.75 times less risky than Harpoon Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Harpoon Therapeutics is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 77.00 in Harpoon Therapeutics on August 28, 2024 and sell it today you would earn a total of 8.00 from holding Harpoon Therapeutics or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.24% |
| Values | Daily Returns |
Woori Financial Group vs. Harpoon Therapeutics
Performance |
| Timeline |
| Woori Financial Group |
| Harpoon Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Woori Financial and Harpoon Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Harpoon Therapeutics
The main advantage of trading using opposite Woori Financial and Harpoon Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Harpoon Therapeutics 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 Harpoon Therapeutics will offset losses from the drop in Harpoon Therapeutics' long position.| Woori Financial vs. Banco Santander Brasil | Woori Financial vs. CrossFirst Bankshares | Woori Financial vs. Banco Bradesco SA | Woori Financial vs. CF Bankshares |
| Harpoon Therapeutics vs. Passage Bio | Harpoon Therapeutics vs. Black Diamond Therapeutics | Harpoon Therapeutics vs. Alector | Harpoon Therapeutics vs. Stoke 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 CEOs Directory module to screen CEOs from public companies around the world.
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