Correlation Between Woori Financial and Mentor Capital
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Mentor Capital 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 Mentor Capital 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 Mentor Capital, you can compare the effects of market volatilities on Woori Financial and Mentor Capital 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 Mentor Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Mentor Capital.
Diversification Opportunities for Woori Financial and Mentor Capital
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Woori and Mentor is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Mentor Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mentor Capital 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 Mentor Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mentor Capital has no effect on the direction of Woori Financial i.e., Woori Financial and Mentor Capital go up and down completely randomly.
Pair Corralation between Woori Financial and Mentor Capital
Allowing for the 90-day total investment horizon Woori Financial Group is expected to generate 0.1 times more return on investment than Mentor Capital. However, Woori Financial Group is 10.35 times less risky than Mentor Capital. It trades about 0.01 of its potential returns per unit of risk. Mentor Capital is currently generating about -0.06 per unit of risk. If you would invest 3,208 in Woori Financial Group on October 24, 2024 and sell it today you would earn a total of 5.00 from holding Woori Financial Group or generate 0.16% 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. Mentor Capital
Performance |
| Timeline |
| Woori Financial Group |
| Mentor Capital |
Woori Financial and Mentor Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Mentor Capital
The main advantage of trading using opposite Woori Financial and Mentor Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Mentor Capital 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 Mentor Capital will offset losses from the drop in Mentor Capital'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 |
| Mentor Capital vs. Cipher Mining | Mentor Capital vs. Terawulf | Mentor Capital vs. Iris Energy | Mentor Capital vs. Stronghold Digital Mining |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |