Correlation Between Woori Financial and Grayscale Digital

Can any of the company-specific risk be diversified away by investing in both Woori Financial and Grayscale Digital 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 Grayscale Digital 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 Grayscale Digital Large, you can compare the effects of market volatilities on Woori Financial and Grayscale Digital 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 Grayscale Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woori Financial and Grayscale Digital.

Diversification Opportunities for Woori Financial and Grayscale Digital

0.94

Correlation Coefficient

Woori Financial  Grayscale Digital

Almost no diversification

The 3 months correlation between Woori and Grayscale is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Woori Financial Group and Grayscale Digital Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Digital Large 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 Grayscale Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Digital Large has no effect on the direction of Woori Financial i.e., Woori Financial and Grayscale Digital go up and down completely randomly.

Pair Corralation between Woori Financial and Grayscale Digital

Allowing for the 90-day total investment horizon Woori Financial Group is expected to generate 1.01 times more return on investment than Grayscale Digital. However, Woori Financial is 1.01 times more volatile than Grayscale Digital Large. It trades about 0.23 of its potential returns per unit of risk. Grayscale Digital Large is currently generating about 0.22 per unit of risk. If you would invest  3,781  in Woori Financial Group on May 6, 2025 and sell it today you would earn a total of  1,362  from holding Woori Financial Group or generate 36.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Woori Financial Group  vs.  Grayscale Digital Large

Woori Financial Group

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Woori Financial Group are ranked lower than 18 (%) 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.

Grayscale Digital Large

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Grayscale Digital Large are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile essential indicators, Grayscale Digital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Woori Financial and Grayscale Digital

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

The idea behind Woori Financial Group and Grayscale Digital Large 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.