Correlation Between WPG Holdings and E Life
Can any of the company-specific risk be diversified away by investing in both WPG Holdings and E Life 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 WPG Holdings and E Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WPG Holdings and E Life Mall Corp, you can compare the effects of market volatilities on WPG Holdings and E Life 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 WPG Holdings with a short position of E Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of WPG Holdings and E Life.
Diversification Opportunities for WPG Holdings and E Life
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WPG and 6281 is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding WPG Holdings and E Life Mall Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Life Mall and WPG Holdings 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 WPG Holdings are associated (or correlated) with E Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Life Mall has no effect on the direction of WPG Holdings i.e., WPG Holdings and E Life go up and down completely randomly.
Pair Corralation between WPG Holdings and E Life
Assuming the 90 days trading horizon WPG Holdings is expected to generate 3.36 times more return on investment than E Life. However, WPG Holdings is 3.36 times more volatile than E Life Mall Corp. It trades about 0.04 of its potential returns per unit of risk. E Life Mall Corp is currently generating about -0.33 per unit of risk. If you would invest 7,010 in WPG Holdings on October 26, 2024 and sell it today you would earn a total of 90.00 from holding WPG Holdings or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WPG Holdings vs. E Life Mall Corp
Performance |
| Timeline |
| WPG Holdings |
| E Life Mall |
WPG Holdings and E Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WPG Holdings and E Life
The main advantage of trading using opposite WPG Holdings and E Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WPG Holdings position performs unexpectedly, E Life 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 E Life will offset losses from the drop in E Life's long position.| WPG Holdings vs. Synnex Technology International | WPG Holdings vs. Powertech Technology | WPG Holdings vs. Wistron Corp | WPG Holdings vs. Chicony Electronics Co |
| E Life vs. Taiwan Secom Co | E Life vs. President Chain Store | E Life vs. Topco Scientific Co | E Life vs. China Steel Chemical |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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