Correlation Between 2S Metal and WHA Industrial
Can any of the company-specific risk be diversified away by investing in both 2S Metal and WHA Industrial 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 2S Metal and WHA Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2S Metal Public and WHA Industrial Leasehold, you can compare the effects of market volatilities on 2S Metal and WHA Industrial 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 2S Metal with a short position of WHA Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2S Metal and WHA Industrial.
Diversification Opportunities for 2S Metal and WHA Industrial
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 2S Metal and WHA is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding 2S Metal Public and WHA Industrial Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Industrial Leasehold and 2S Metal 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 2S Metal Public are associated (or correlated) with WHA Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Industrial Leasehold has no effect on the direction of 2S Metal i.e., 2S Metal and WHA Industrial go up and down completely randomly.
Pair Corralation between 2S Metal and WHA Industrial
Assuming the 90 days horizon 2S Metal Public is expected to under-perform the WHA Industrial. But the stock apears to be less risky and, when comparing its historical volatility, 2S Metal Public is 1.02 times less risky than WHA Industrial. The stock trades about -0.04 of its potential returns per unit of risk. The WHA Industrial Leasehold is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 583.00 in WHA Industrial Leasehold on September 2, 2024 and sell it today you would earn a total of 77.00 from holding WHA Industrial Leasehold or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
2S Metal Public vs. WHA Industrial Leasehold
Performance |
| Timeline |
| 2S Metal Public |
| WHA Industrial Leasehold |
2S Metal and WHA Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 2S Metal and WHA Industrial
The main advantage of trading using opposite 2S Metal and WHA Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2S Metal position performs unexpectedly, WHA Industrial 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 WHA Industrial will offset losses from the drop in WHA Industrial's long position.| 2S Metal vs. Diamond Building Products | 2S Metal vs. MCS Steel Public | 2S Metal vs. Asia Green Energy | 2S Metal vs. Hwa Fong Rubber |
| WHA Industrial vs. Quality Houses Property | WHA Industrial vs. Ticon Freehold and | WHA Industrial vs. CPN Retail Growth | WHA Industrial vs. Prospect Logistics and |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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