Correlation Between Woori Financial and Vector
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Vector 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 Vector 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 Vector Group, you can compare the effects of market volatilities on Woori Financial and Vector 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 Vector. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Vector.
Diversification Opportunities for Woori Financial and Vector
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woori and Vector is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Vector Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vector Group 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 Vector. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vector Group has no effect on the direction of Woori Financial i.e., Woori Financial and Vector go up and down completely randomly.
Pair Corralation between Woori Financial and Vector
If you would invest 2,471 in Woori Financial Group on November 9, 2024 and sell it today you would earn a total of 776.00 from holding Woori Financial Group or generate 31.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Woori Financial Group vs. Vector Group
Performance |
| Timeline |
| Woori Financial Group |
| Vector Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Woori Financial and Vector Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woori Financial and Vector
The main advantage of trading using opposite Woori Financial and Vector positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Vector 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 Vector will offset losses from the drop in Vector'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 |
| Vector vs. Universal | Vector vs. Imperial Brands PLC | Vector vs. Japan Tobacco ADR | Vector vs. Philip Morris International |
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.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |