Correlation Between Woori Financial and Tellurian
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Tellurian 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 Tellurian 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 Tellurian, you can compare the effects of market volatilities on Woori Financial and Tellurian 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 Tellurian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Tellurian.
Diversification Opportunities for Woori Financial and Tellurian
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Woori and Tellurian is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Tellurian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tellurian 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 Tellurian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tellurian has no effect on the direction of Woori Financial i.e., Woori Financial and Tellurian go up and down completely randomly.
Pair Corralation between Woori Financial and Tellurian
Allowing for the 90-day total investment horizon Woori Financial is expected to generate 1.51 times less return on investment than Tellurian. But when comparing it to its historical volatility, Woori Financial Group is 4.42 times less risky than Tellurian. It trades about 0.07 of its potential returns per unit of risk. Tellurian is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 136.00 in Tellurian on August 30, 2024 and sell it today you would lose (36.00) from holding Tellurian or give up 26.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.12% |
| Values | Daily Returns |
Woori Financial Group vs. Tellurian
Performance |
| Timeline |
| Woori Financial Group |
| Tellurian |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Woori Financial and Tellurian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Tellurian
The main advantage of trading using opposite Woori Financial and Tellurian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Tellurian 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 Tellurian will offset losses from the drop in Tellurian'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 |
| Tellurian vs. Epsilon Energy | Tellurian vs. GeoPark | Tellurian vs. Kosmos Energy | Tellurian vs. PEDEVCO Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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