Correlation Between Woori Financial and UPD Holding
Can any of the company-specific risk be diversified away by investing in both Woori Financial and UPD Holding 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 UPD Holding 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 UPD Holding Corp, you can compare the effects of market volatilities on Woori Financial and UPD Holding 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 UPD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and UPD Holding.
Diversification Opportunities for Woori Financial and UPD Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and UPD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and UPD Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPD Holding Corp 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 UPD Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPD Holding Corp has no effect on the direction of Woori Financial i.e., Woori Financial and UPD Holding go up and down completely randomly.
Pair Corralation between Woori Financial and UPD Holding
If you would invest 3,124 in Woori Financial Group on September 3, 2024 and sell it today you would earn a total of 450.00 from holding Woori Financial Group or generate 14.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woori Financial Group vs. UPD Holding Corp
Performance |
| Timeline |
| Woori Financial Group |
| UPD Holding Corp |
Woori Financial and UPD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and UPD Holding
The main advantage of trading using opposite Woori Financial and UPD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, UPD Holding 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 UPD Holding will offset losses from the drop in UPD Holding'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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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