Correlation Between Chlitina Holding and Wellell
Can any of the company-specific risk be diversified away by investing in both Chlitina Holding and Wellell 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 Chlitina Holding and Wellell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chlitina Holding and Wellell, you can compare the effects of market volatilities on Chlitina Holding and Wellell 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 Chlitina Holding with a short position of Wellell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chlitina Holding and Wellell.
Diversification Opportunities for Chlitina Holding and Wellell
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chlitina and Wellell is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Chlitina Holding and Wellell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wellell and Chlitina Holding 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 Chlitina Holding are associated (or correlated) with Wellell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wellell has no effect on the direction of Chlitina Holding i.e., Chlitina Holding and Wellell go up and down completely randomly.
Pair Corralation between Chlitina Holding and Wellell
Assuming the 90 days trading horizon Chlitina Holding is expected to under-perform the Wellell. In addition to that, Chlitina Holding is 2.72 times more volatile than Wellell. It trades about -0.53 of its total potential returns per unit of risk. Wellell is currently generating about -0.24 per unit of volatility. If you would invest 2,520 in Wellell on September 3, 2024 and sell it today you would lose (80.00) from holding Wellell or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chlitina Holding vs. Wellell
Performance |
| Timeline |
| Chlitina Holding |
| Wellell |
Chlitina Holding and Wellell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chlitina Holding and Wellell
The main advantage of trading using opposite Chlitina Holding and Wellell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chlitina Holding position performs unexpectedly, Wellell 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 Wellell will offset losses from the drop in Wellell's long position.| Chlitina Holding vs. Standard Foods Corp | Chlitina Holding vs. TTET Union Corp | Chlitina Holding vs. Uni President Enterprises Corp | Chlitina Holding vs. Charoen Pokphand Enterprise |
| Wellell vs. Sinphar Pharmaceutical Co | Wellell vs. Excelsior Medical Co | Wellell vs. Abnova Taiwan Corp | Wellell vs. Phytohealth Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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