Correlation Between Woori Financial and Danske Bank

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Woori Financial and Danske Bank 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 Danske Bank 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 Danske Bank AS, you can compare the effects of market volatilities on Woori Financial and Danske Bank 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 Danske Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Danske Bank.

Diversification Opportunities for Woori Financial and Danske Bank

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Woori and Danske is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Danske Bank AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Danske Bank AS 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 Danske Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Danske Bank AS has no effect on the direction of Woori Financial i.e., Woori Financial and Danske Bank go up and down completely randomly.

Pair Corralation between Woori Financial and Danske Bank

Allowing for the 90-day total investment horizon Woori Financial Group is expected to generate 1.62 times more return on investment than Danske Bank. However, Woori Financial is 1.62 times more volatile than Danske Bank AS. It trades about 0.25 of its potential returns per unit of risk. Danske Bank AS is currently generating about 0.11 per unit of risk. If you would invest  3,767  in Woori Financial Group on May 7, 2025 and sell it today you would earn a total of  1,453  from holding Woori Financial Group or generate 38.57% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Woori Financial Group  vs.  Danske Bank AS

 Performance 
       Timeline  
Woori Financial Group 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Woori Financial Group are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Woori Financial reported solid returns over the last few months and may actually be approaching a breakup point.
Danske Bank AS 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Danske Bank AS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Danske Bank may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Woori Financial and Danske Bank Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Woori Financial and Danske Bank

The main advantage of trading using opposite Woori Financial and Danske Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woori Financial position performs unexpectedly, Danske Bank 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 Danske Bank will offset losses from the drop in Danske Bank's long position.
The idea behind Woori Financial Group and Danske Bank AS 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

Other Complementary Tools

Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Bonds Directory
Find actively traded corporate debentures issued by US companies
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated