Correlation Between Woori Financial and Qsam Biosciences
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Qsam Biosciences 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 Qsam Biosciences 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 Qsam Biosciences, you can compare the effects of market volatilities on Woori Financial and Qsam Biosciences 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 Qsam Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Qsam Biosciences.
Diversification Opportunities for Woori Financial and Qsam Biosciences
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Woori and Qsam is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Qsam Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qsam Biosciences 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 Qsam Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qsam Biosciences has no effect on the direction of Woori Financial i.e., Woori Financial and Qsam Biosciences go up and down completely randomly.
Pair Corralation between Woori Financial and Qsam Biosciences
If you would invest 3,109 in Woori Financial Group on November 3, 2024 and sell it today you would earn a total of 161.00 from holding Woori Financial Group or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Woori Financial Group vs. Qsam Biosciences
Performance |
| Timeline |
| Woori Financial Group |
| Qsam Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Woori Financial and Qsam Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Qsam Biosciences
The main advantage of trading using opposite Woori Financial and Qsam Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Qsam Biosciences 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 Qsam Biosciences will offset losses from the drop in Qsam Biosciences' long position.| Woori Financial vs. Shinhan Financial Group | Woori Financial vs. Korea Electric Power | Woori Financial vs. Orix Corp Ads | Woori Financial vs. SK Telecom Co |
| Qsam Biosciences vs. Lineage Cell Therapeutics | Qsam Biosciences vs. Cadrenal Therapeutics, Common | Qsam Biosciences vs. ImmuCell | Qsam Biosciences vs. Oxford Nanopore Technologies |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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