Correlation Between Woori Financial and Kontrol Technologies
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Kontrol Technologies 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 Kontrol Technologies 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 Kontrol Technologies Corp, you can compare the effects of market volatilities on Woori Financial and Kontrol Technologies 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 Kontrol Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Kontrol Technologies.
Diversification Opportunities for Woori Financial and Kontrol Technologies
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Kontrol is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Kontrol Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontrol Technologies Corp 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 Kontrol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontrol Technologies Corp has no effect on the direction of Woori Financial i.e., Woori Financial and Kontrol Technologies go up and down completely randomly.
Pair Corralation between Woori Financial and Kontrol Technologies
Allowing for the 90-day total investment horizon Woori Financial Group is expected to generate 0.29 times more return on investment than Kontrol Technologies. However, Woori Financial Group is 3.46 times less risky than Kontrol Technologies. It trades about 0.07 of its potential returns per unit of risk. Kontrol Technologies Corp is currently generating about 0.0 per unit of risk. If you would invest 3,066 in Woori Financial Group on September 2, 2024 and sell it today you would earn a total of 508.00 from holding Woori Financial Group or generate 16.57% 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. Kontrol Technologies Corp
Performance |
| Timeline |
| Woori Financial Group |
| Kontrol Technologies Corp |
Woori Financial and Kontrol Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Kontrol Technologies
The main advantage of trading using opposite Woori Financial and Kontrol Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Kontrol Technologies 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 Kontrol Technologies will offset losses from the drop in Kontrol Technologies' 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 |
| Kontrol Technologies vs. SEATech Ventures Corp | Kontrol Technologies vs. Xalles Holdings | Kontrol Technologies vs. GBT Technologies | Kontrol Technologies vs. Quisitive Technology Solutions |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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