Correlation Between Golden Ventures and WHA Premium
Can any of the company-specific risk be diversified away by investing in both Golden Ventures and WHA Premium 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 Golden Ventures and WHA Premium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Ventures Leasehold and WHA Premium Growth, you can compare the effects of market volatilities on Golden Ventures and WHA Premium 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 Golden Ventures with a short position of WHA Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Ventures and WHA Premium.
Diversification Opportunities for Golden Ventures and WHA Premium
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Golden and WHA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Golden Ventures Leasehold and WHA Premium Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Premium Growth and Golden Ventures 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 Golden Ventures Leasehold are associated (or correlated) with WHA Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Premium Growth has no effect on the direction of Golden Ventures i.e., Golden Ventures and WHA Premium go up and down completely randomly.
Pair Corralation between Golden Ventures and WHA Premium
Assuming the 90 days trading horizon Golden Ventures Leasehold is expected to generate 1.36 times more return on investment than WHA Premium. However, Golden Ventures is 1.36 times more volatile than WHA Premium Growth. It trades about 0.05 of its potential returns per unit of risk. WHA Premium Growth is currently generating about -0.03 per unit of risk. If you would invest 675.00 in Golden Ventures Leasehold on September 1, 2024 and sell it today you would earn a total of 10.00 from holding Golden Ventures Leasehold or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Ventures Leasehold vs. WHA Premium Growth
Performance |
| Timeline |
| Golden Ventures Leasehold |
| WHA Premium Growth |
Golden Ventures and WHA Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Ventures and WHA Premium
The main advantage of trading using opposite Golden Ventures and WHA Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Ventures position performs unexpectedly, WHA Premium 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 Premium will offset losses from the drop in WHA Premium's long position.| Golden Ventures vs. Impact Growth REIT | Golden Ventures vs. CPN Retail Growth | Golden Ventures vs. WHA Premium Growth | Golden Ventures vs. LH Shopping Centers |
| WHA Premium vs. Quality Houses Property | WHA Premium vs. Land and Houses | WHA Premium vs. LH Hotel Leasehold | WHA Premium vs. LH Shopping Centers |
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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