Correlation Between FUTURE GAMING and WOORI FIN

Can any of the company-specific risk be diversified away by investing in both FUTURE GAMING and WOORI FIN 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 FUTURE GAMING and WOORI FIN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FUTURE GAMING GRP and WOORI FIN GRP, you can compare the effects of market volatilities on FUTURE GAMING and WOORI FIN 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 FUTURE GAMING with a short position of WOORI FIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUTURE GAMING and WOORI FIN.

Diversification Opportunities for FUTURE GAMING and WOORI FIN

0.11

Correlation Coefficient

FUTURE GAMING  WOORI FIN

Average diversification

The 3 months correlation between FUTURE and WOORI is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP and WOORI FIN GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WOORI FIN GRP and FUTURE GAMING 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 FUTURE GAMING GRP are associated (or correlated) with WOORI FIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WOORI FIN GRP has no effect on the direction of FUTURE GAMING i.e., FUTURE GAMING and WOORI FIN go up and down completely randomly.

Pair Corralation between FUTURE GAMING and WOORI FIN

Assuming the 90 days trading horizon FUTURE GAMING GRP is expected to under-perform the WOORI FIN. In addition to that, FUTURE GAMING is 1.01 times more volatile than WOORI FIN GRP. It trades about -0.03 of its total potential returns per unit of risk. WOORI FIN GRP is currently generating about 0.03 per unit of volatility. If you would invest  2,765  in WOORI FIN GRP on September 17, 2024 and sell it today you would earn a total of  215.00  from holding WOORI FIN GRP or generate 7.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.22%
Values	Daily Returns

FUTURE GAMING GRP  vs.  WOORI FIN GRP

FUTURE GAMING GRP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FUTURE GAMING GRP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

WOORI FIN GRP

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WOORI FIN GRP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, WOORI FIN is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with FUTURE GAMING and WOORI FIN

The main advantage of trading using opposite FUTURE GAMING and WOORI FIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUTURE GAMING position performs unexpectedly, WOORI FIN 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 WOORI FIN will offset losses from the drop in WOORI FIN's long position.

The idea behind FUTURE GAMING GRP and WOORI FIN GRP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.