Correlation Between Dharma Polimetal and Bank Woori

Can any of the company-specific risk be diversified away by investing in both Dharma Polimetal and Bank Woori 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 Dharma Polimetal and Bank Woori into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dharma Polimetal Tbk and Bank Woori Saudara, you can compare the effects of market volatilities on Dharma Polimetal and Bank Woori 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 Dharma Polimetal with a short position of Bank Woori. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dharma Polimetal and Bank Woori.

Diversification Opportunities for Dharma Polimetal and Bank Woori

0.49

Correlation Coefficient

Dharma Polimetal  Bank Woori

Very weak diversification

The 3 months correlation between Dharma and Bank is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Dharma Polimetal Tbk and Bank Woori Saudara in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Woori Saudara and Dharma Polimetal 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 Dharma Polimetal Tbk are associated (or correlated) with Bank Woori. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Woori Saudara has no effect on the direction of Dharma Polimetal i.e., Dharma Polimetal and Bank Woori go up and down completely randomly.

Pair Corralation between Dharma Polimetal and Bank Woori

Assuming the 90 days trading horizon Dharma Polimetal Tbk is expected to generate 1.25 times more return on investment than Bank Woori. However, Dharma Polimetal is 1.25 times more volatile than Bank Woori Saudara. It trades about 0.12 of its potential returns per unit of risk. Bank Woori Saudara is currently generating about -0.19 per unit of risk. If you would invest  87,546  in Dharma Polimetal Tbk on April 17, 2025 and sell it today you would earn a total of  8,954  from holding Dharma Polimetal Tbk or generate 10.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.21%
Values	Daily Returns

Dharma Polimetal Tbk  vs.  Bank Woori Saudara

Dharma Polimetal Tbk

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dharma Polimetal Tbk are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Dharma Polimetal may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Bank Woori Saudara

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bank Woori Saudara has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Dharma Polimetal and Bank Woori

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

The idea behind Dharma Polimetal Tbk and Bank Woori Saudara 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.