Correlation Between Woori Financial and High Performance
Can any of the company-specific risk be diversified away by investing in both Woori Financial and High Performance 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 High Performance 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 High Performance Beverages, you can compare the effects of market volatilities on Woori Financial and High Performance 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 High Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and High Performance.
Diversification Opportunities for Woori Financial and High Performance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and High is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and High Performance Beverages in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Performance Bev 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 High Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Performance Bev has no effect on the direction of Woori Financial i.e., Woori Financial and High Performance go up and down completely randomly.
Pair Corralation between Woori Financial and High Performance
Allowing for the 90-day total investment horizon Woori Financial is expected to generate 1211.49 times less return on investment than High Performance. But when comparing it to its historical volatility, Woori Financial Group is 200.76 times less risky than High Performance. It trades about 0.06 of its potential returns per unit of risk. High Performance Beverages is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 0.01 in High Performance Beverages on September 4, 2024 and sell it today you would lose (0.01) from holding High Performance Beverages or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Woori Financial Group vs. High Performance Beverages
Performance |
| Timeline |
| Woori Financial Group |
| High Performance Bev |
Woori Financial and High Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and High Performance
The main advantage of trading using opposite Woori Financial and High Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, High Performance 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 High Performance will offset losses from the drop in High Performance'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 |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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