Correlation Between Woori Financial and Nova Minerals
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Nova Minerals 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 Nova Minerals 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 Nova Minerals Limited, you can compare the effects of market volatilities on Woori Financial and Nova Minerals 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 Nova Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Nova Minerals.
Diversification Opportunities for Woori Financial and Nova Minerals
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Nova is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Nova Minerals Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Minerals Limited 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 Nova Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Minerals Limited has no effect on the direction of Woori Financial i.e., Woori Financial and Nova Minerals go up and down completely randomly.
Pair Corralation between Woori Financial and Nova Minerals
If you would invest 3,366 in Woori Financial Group on September 1, 2024 and sell it today you would earn a total of 208.00 from holding Woori Financial Group or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. Nova Minerals Limited
Performance |
| Timeline |
| Woori Financial Group |
| Nova Minerals Limited |
Woori Financial and Nova Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Nova Minerals
The main advantage of trading using opposite Woori Financial and Nova Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Nova Minerals 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 Nova Minerals will offset losses from the drop in Nova Minerals' long position.| Woori Financial vs. Banco Santander Brasil | Woori Financial vs. CrossFirst Bankshares | Woori Financial vs. Banco Bradesco SA | Woori Financial vs. CF Bankshares |
| Nova Minerals vs. ATT Inc | Nova Minerals vs. Merck Company | Nova Minerals vs. Walt Disney | Nova Minerals vs. Caterpillar |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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