Correlation Between WPG Holdings and Wayi International
Can any of the company-specific risk be diversified away by investing in both WPG Holdings and Wayi International 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 Wayi International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WPG Holdings and Wayi International Digital, you can compare the effects of market volatilities on WPG Holdings and Wayi International 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 Wayi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of WPG Holdings and Wayi International.
Diversification Opportunities for WPG Holdings and Wayi International
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WPG and Wayi is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding WPG Holdings and Wayi International Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wayi International 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 Wayi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wayi International has no effect on the direction of WPG Holdings i.e., WPG Holdings and Wayi International go up and down completely randomly.
Pair Corralation between WPG Holdings and Wayi International
If you would invest 15,150 in Wayi International Digital on October 22, 2024 and sell it today you would earn a total of 3,450 from holding Wayi International Digital or generate 22.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
WPG Holdings vs. Wayi International Digital
Performance |
| Timeline |
| WPG Holdings |
| Wayi International |
WPG Holdings and Wayi International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WPG Holdings and Wayi International
The main advantage of trading using opposite WPG Holdings and Wayi International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WPG Holdings position performs unexpectedly, Wayi International 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 Wayi International will offset losses from the drop in Wayi International's long position.| WPG Holdings vs. Mechema Chemicals Int | WPG Holdings vs. Chi Sheng Chemical | WPG Holdings vs. Johnson Chemical Pharmaceutical | WPG Holdings vs. China Airlines |
| Wayi International vs. Johnson Health Tech | Wayi International vs. De Licacy Industrial | Wayi International vs. Phytohealth Corp | Wayi International vs. MedFirst Healthcare Services |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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