Correlation Between Grande Asset and Workpoint Entertainment
Can any of the company-specific risk be diversified away by investing in both Grande Asset 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 Grande Asset and Workpoint Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Asset Hotels and Workpoint Entertainment Public, you can compare the effects of market volatilities on Grande Asset 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 Grande Asset with a short position of Workpoint Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Asset and Workpoint Entertainment.
Diversification Opportunities for Grande Asset and Workpoint Entertainment
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grande and Workpoint is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Grande Asset Hotels and Workpoint Entertainment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workpoint Entertainment and Grande Asset 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 Grande Asset Hotels 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 Grande Asset i.e., Grande Asset and Workpoint Entertainment go up and down completely randomly.
Pair Corralation between Grande Asset and Workpoint Entertainment
Assuming the 90 days trading horizon Grande Asset Hotels is expected to under-perform the Workpoint Entertainment. In addition to that, Grande Asset is 5.73 times more volatile than Workpoint Entertainment Public. It trades about -0.1 of its total potential returns per unit of risk. Workpoint Entertainment Public is currently generating about -0.44 per unit of volatility. If you would invest 880.00 in Workpoint Entertainment Public on September 2, 2024 and sell it today you would lose (100.00) from holding Workpoint Entertainment Public or give up 11.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grande Asset Hotels vs. Workpoint Entertainment Public
Performance |
| Timeline |
| Grande Asset Hotels |
| Workpoint Entertainment |
Grande Asset and Workpoint Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Asset and Workpoint Entertainment
The main advantage of trading using opposite Grande Asset and Workpoint Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Asset 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.| Grande Asset vs. Turnkey Communication Services | Grande Asset vs. Digital Telecommunications Infrastructure | Grande Asset vs. Lohakit Metal Public | Grande Asset vs. CPR Gomu Industrial |
| Workpoint Entertainment vs. Bangkok Chain Hospital | Workpoint Entertainment vs. Grande Asset Hotels | Workpoint Entertainment vs. Better World Green | Workpoint Entertainment vs. Chularat Hospital 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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