Correlation Between Woori Financial and JSR
Can any of the company-specific risk be diversified away by investing in both Woori Financial and JSR 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 JSR 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 JSR Corporation, you can compare the effects of market volatilities on Woori Financial and JSR 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 JSR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and JSR.
Diversification Opportunities for Woori Financial and JSR
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and JSR is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and JSR Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSR Corporation 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 JSR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSR Corporation has no effect on the direction of Woori Financial i.e., Woori Financial and JSR go up and down completely randomly.
Pair Corralation between Woori Financial and JSR
Allowing for the 90-day total investment horizon Woori Financial Group is expected to generate 5.33 times more return on investment than JSR. However, Woori Financial is 5.33 times more volatile than JSR Corporation. It trades about 0.08 of its potential returns per unit of risk. JSR Corporation is currently generating about 0.09 per unit of risk. If you would invest 2,612 in Woori Financial Group on September 2, 2024 and sell it today you would earn a total of 962.00 from holding Woori Financial Group or generate 36.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 54.84% |
| Values | Daily Returns |
Woori Financial Group vs. JSR Corp.
Performance |
| Timeline |
| Woori Financial Group |
| JSR Corporation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Woori Financial and JSR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and JSR
The main advantage of trading using opposite Woori Financial and JSR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, JSR 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 JSR will offset losses from the drop in JSR'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 |
| JSR vs. Chemours Co | JSR vs. International Flavors Fragrances | JSR vs. Air Products and | JSR vs. PPG Industries |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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