Correlation Between Eastern Technical and WHA Public
Can any of the company-specific risk be diversified away by investing in both Eastern Technical and WHA Public 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 Eastern Technical and WHA Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Technical Engineering and WHA Public, you can compare the effects of market volatilities on Eastern Technical and WHA Public 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 Eastern Technical with a short position of WHA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Technical and WHA Public.
Diversification Opportunities for Eastern Technical and WHA Public
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eastern and WHA is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Technical Engineering and WHA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Public and Eastern Technical 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 Eastern Technical Engineering are associated (or correlated) with WHA Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Public has no effect on the direction of Eastern Technical i.e., Eastern Technical and WHA Public go up and down completely randomly.
Pair Corralation between Eastern Technical and WHA Public
Assuming the 90 days trading horizon Eastern Technical Engineering is expected to generate 26.62 times more return on investment than WHA Public. However, Eastern Technical is 26.62 times more volatile than WHA Public. It trades about 0.04 of its potential returns per unit of risk. WHA Public is currently generating about 0.07 per unit of risk. If you would invest 119.00 in Eastern Technical Engineering on August 27, 2024 and sell it today you would lose (27.00) from holding Eastern Technical Engineering or give up 22.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Technical Engineering vs. WHA Public
Performance |
| Timeline |
| Eastern Technical |
| WHA Public |
Eastern Technical and WHA Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Technical and WHA Public
The main advantage of trading using opposite Eastern Technical and WHA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Technical position performs unexpectedly, WHA Public 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 Public will offset losses from the drop in WHA Public's long position.| Eastern Technical vs. G Capital Public | Eastern Technical vs. Harn Engineering Solutions | Eastern Technical vs. Fortune Parts Industry | Eastern Technical vs. Hydrotek Public |
| WHA Public vs. Bangkok Dusit Medical | WHA Public vs. Land and Houses | WHA Public vs. BTS Group Holdings | WHA Public vs. Bangkok Expressway and |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |