Correlation Between AIRA Capital and Workpoint Entertainment
Can any of the company-specific risk be diversified away by investing in both AIRA Capital and Workpoint Entertainment 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 AIRA Capital and Workpoint Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIRA Capital Public and Workpoint Entertainment Public, you can compare the effects of market volatilities on AIRA Capital and Workpoint Entertainment 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 AIRA Capital with a short position of Workpoint Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Capital and Workpoint Entertainment.
Diversification Opportunities for AIRA Capital and Workpoint Entertainment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AIRA and Workpoint is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Capital Public and Workpoint Entertainment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workpoint Entertainment and AIRA Capital 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 AIRA Capital Public are associated (or correlated) with Workpoint Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workpoint Entertainment has no effect on the direction of AIRA Capital i.e., AIRA Capital and Workpoint Entertainment go up and down completely randomly.
Pair Corralation between AIRA Capital and Workpoint Entertainment
Assuming the 90 days trading horizon AIRA Capital Public is expected to under-perform the Workpoint Entertainment. In addition to that, AIRA Capital is 2.32 times more volatile than Workpoint Entertainment Public. It trades about -0.25 of its total potential returns per unit of risk. Workpoint Entertainment Public is currently generating about -0.27 per unit of volatility. If you would invest 865.00 in Workpoint Entertainment Public on August 27, 2024 and sell it today you would lose (60.00) from holding Workpoint Entertainment Public or give up 6.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIRA Capital Public vs. Workpoint Entertainment Public
Performance |
| Timeline |
| AIRA Capital Public |
| Workpoint Entertainment |
AIRA Capital and Workpoint Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRA Capital and Workpoint Entertainment
The main advantage of trading using opposite AIRA Capital and Workpoint Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Capital position performs unexpectedly, Workpoint Entertainment 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 Workpoint Entertainment will offset losses from the drop in Workpoint Entertainment's long position.| AIRA Capital vs. Delta Electronics Public | AIRA Capital vs. Delta Electronics Public | AIRA Capital vs. Airports of Thailand | AIRA Capital vs. Airports of Thailand |
| Workpoint Entertainment vs. BEC World Public | Workpoint Entertainment vs. Beauty Community Public | Workpoint Entertainment vs. Major Cineplex Group | Workpoint Entertainment vs. True Public |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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