Correlation Between Woori Financial and Exmar NV
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Exmar NV 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 Exmar NV 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 Exmar NV, you can compare the effects of market volatilities on Woori Financial and Exmar NV 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 Exmar NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Exmar NV.
Diversification Opportunities for Woori Financial and Exmar NV
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Woori and Exmar is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Exmar NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exmar NV 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 Exmar NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exmar NV has no effect on the direction of Woori Financial i.e., Woori Financial and Exmar NV go up and down completely randomly.
Pair Corralation between Woori Financial and Exmar NV
Allowing for the 90-day total investment horizon Woori Financial is expected to generate 7.77 times less return on investment than Exmar NV. But when comparing it to its historical volatility, Woori Financial Group is 5.02 times less risky than Exmar NV. It trades about 0.09 of its potential returns per unit of risk. Exmar NV is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 765.00 in Exmar NV on December 18, 2024 and sell it today you would earn a total of 438.00 from holding Exmar NV or generate 57.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Woori Financial Group vs. Exmar NV
Performance |
Timeline |
Woori Financial Group |
Exmar NV |
Woori Financial and Exmar NV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Woori Financial and Exmar NV
The main advantage of trading using opposite Woori Financial and Exmar NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Exmar NV 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 Exmar NV will offset losses from the drop in Exmar NV's long position.Woori Financial vs. JPMorgan Chase Co | Woori Financial vs. Citigroup | Woori Financial vs. Wells Fargo | Woori Financial vs. Toronto Dominion Bank |
Exmar NV vs. One Group Hospitality | Exmar NV vs. Compania Cervecerias Unidas | Exmar NV vs. Japan Tobacco ADR | Exmar NV vs. Dalata Hotel Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |