Correlation Between Wisher Industrial and Grape King
Can any of the company-specific risk be diversified away by investing in both Wisher Industrial and Grape King 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 Wisher Industrial and Grape King into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wisher Industrial Co and Grape King Bio, you can compare the effects of market volatilities on Wisher Industrial and Grape King 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 Wisher Industrial with a short position of Grape King. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisher Industrial and Grape King.
Diversification Opportunities for Wisher Industrial and Grape King
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wisher and Grape is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Wisher Industrial Co and Grape King Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grape King Bio and Wisher Industrial 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 Wisher Industrial Co are associated (or correlated) with Grape King. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grape King Bio has no effect on the direction of Wisher Industrial i.e., Wisher Industrial and Grape King go up and down completely randomly.
Pair Corralation between Wisher Industrial and Grape King
Assuming the 90 days trading horizon Wisher Industrial Co is expected to generate 0.82 times more return on investment than Grape King. However, Wisher Industrial Co is 1.21 times less risky than Grape King. It trades about 0.03 of its potential returns per unit of risk. Grape King Bio is currently generating about 0.0 per unit of risk. If you would invest 1,299 in Wisher Industrial Co on August 31, 2024 and sell it today you would earn a total of 191.00 from holding Wisher Industrial Co or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Wisher Industrial Co vs. Grape King Bio
Performance |
| Timeline |
| Wisher Industrial |
| Grape King Bio |
Wisher Industrial and Grape King Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisher Industrial and Grape King
The main advantage of trading using opposite Wisher Industrial and Grape King positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisher Industrial position performs unexpectedly, Grape King 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 Grape King will offset losses from the drop in Grape King's long position.| Wisher Industrial vs. De Licacy Industrial | Wisher Industrial vs. Nien Hsing Textile | Wisher Industrial vs. Tainan Enterprises Co | Wisher Industrial vs. Tex Ray Industrial Co |
| Grape King vs. Taisun Enterprise Co | Grape King vs. De Licacy Industrial | Grape King vs. Wisher Industrial Co | Grape King vs. Tainan Enterprises Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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