Correlation Between In Win and Wha Yu
Can any of the company-specific risk be diversified away by investing in both In Win and Wha Yu 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 In Win and Wha Yu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between In Win Development and Wha Yu Industrial, you can compare the effects of market volatilities on In Win and Wha Yu 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 In Win with a short position of Wha Yu. Check out your portfolio center. Please also check ongoing floating volatility patterns of In Win and Wha Yu.
Diversification Opportunities for In Win and Wha Yu
Average diversification
The 3 months correlation between 6117 and Wha is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding In Win Development and Wha Yu Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wha Yu Industrial and In Win 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 In Win Development are associated (or correlated) with Wha Yu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wha Yu Industrial has no effect on the direction of In Win i.e., In Win and Wha Yu go up and down completely randomly.
Pair Corralation between In Win and Wha Yu
Assuming the 90 days trading horizon In Win Development is expected to generate 2.02 times more return on investment than Wha Yu. However, In Win is 2.02 times more volatile than Wha Yu Industrial. It trades about 0.11 of its potential returns per unit of risk. Wha Yu Industrial is currently generating about 0.0 per unit of risk. If you would invest 1,410 in In Win Development on November 2, 2024 and sell it today you would earn a total of 7,090 from holding In Win Development or generate 502.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
In Win Development vs. Wha Yu Industrial
Performance |
| Timeline |
| In Win Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Wha Yu Industrial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
In Win and Wha Yu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with In Win and Wha Yu
The main advantage of trading using opposite In Win and Wha Yu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if In Win position performs unexpectedly, Wha Yu 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 Yu will offset losses from the drop in Wha Yu's long position.The idea behind In Win Development and Wha Yu Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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