Correlation Between Ichitan Group and WHA Utilities
Can any of the company-specific risk be diversified away by investing in both Ichitan Group and WHA Utilities 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 Ichitan Group and WHA Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ichitan Group Public and WHA Utilities and, you can compare the effects of market volatilities on Ichitan Group and WHA Utilities 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 Ichitan Group with a short position of WHA Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ichitan Group and WHA Utilities.
Diversification Opportunities for Ichitan Group and WHA Utilities
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ichitan and WHA is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ichitan Group Public and WHA Utilities and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Utilities and Ichitan Group 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 Ichitan Group Public are associated (or correlated) with WHA Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Utilities has no effect on the direction of Ichitan Group i.e., Ichitan Group and WHA Utilities go up and down completely randomly.
Pair Corralation between Ichitan Group and WHA Utilities
Assuming the 90 days trading horizon Ichitan Group Public is expected to under-perform the WHA Utilities. But the stock apears to be less risky and, when comparing its historical volatility, Ichitan Group Public is 1.26 times less risky than WHA Utilities. The stock trades about -0.1 of its potential returns per unit of risk. The WHA Utilities and is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 474.00 in WHA Utilities and on September 19, 2024 and sell it today you would earn a total of 14.00 from holding WHA Utilities and or generate 2.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ichitan Group Public vs. WHA Utilities and
Performance |
Timeline |
Ichitan Group Public |
WHA Utilities |
Ichitan Group and WHA Utilities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ichitan Group and WHA Utilities
The main advantage of trading using opposite Ichitan Group and WHA Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ichitan Group position performs unexpectedly, WHA Utilities 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 Utilities will offset losses from the drop in WHA Utilities' long position.Ichitan Group vs. GFPT Public | Ichitan Group vs. Dynasty Ceramic Public | Ichitan Group vs. Haad Thip Public | Ichitan Group vs. The Erawan Group |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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