Correlation Between Wan Hai and G Shank
Can any of the company-specific risk be diversified away by investing in both Wan Hai and G Shank 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 Wan Hai and G Shank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wan Hai Lines and G Shank Enterprise Co, you can compare the effects of market volatilities on Wan Hai and G Shank 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 Wan Hai with a short position of G Shank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wan Hai and G Shank.
Diversification Opportunities for Wan Hai and G Shank
Very good diversification
The 3 months correlation between Wan and 2476 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Wan Hai Lines and G Shank Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Shank Enterprise and Wan Hai 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 Wan Hai Lines are associated (or correlated) with G Shank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Shank Enterprise has no effect on the direction of Wan Hai i.e., Wan Hai and G Shank go up and down completely randomly.
Pair Corralation between Wan Hai and G Shank
Assuming the 90 days trading horizon Wan Hai is expected to generate 1.09 times less return on investment than G Shank. In addition to that, Wan Hai is 1.34 times more volatile than G Shank Enterprise Co. It trades about 0.06 of its total potential returns per unit of risk. G Shank Enterprise Co is currently generating about 0.09 per unit of volatility. If you would invest 4,689 in G Shank Enterprise Co on September 12, 2024 and sell it today you would earn a total of 3,981 from holding G Shank Enterprise Co or generate 84.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Wan Hai Lines vs. G Shank Enterprise Co
Performance |
| Timeline |
| Wan Hai Lines |
| G Shank Enterprise |
Wan Hai and G Shank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wan Hai and G Shank
The main advantage of trading using opposite Wan Hai and G Shank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wan Hai position performs unexpectedly, G Shank 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 G Shank will offset losses from the drop in G Shank's long position.| Wan Hai vs. Yang Ming Marine | Wan Hai vs. U Ming Marine Transport | Wan Hai vs. Taiwan Navigation Co | Wan Hai vs. China Airlines |
| G Shank vs. Yang Ming Marine | G Shank vs. Wan Hai Lines | G Shank vs. U Ming Marine Transport | G Shank vs. Taiwan Navigation 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.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |