Correlation Between Image Protect and WH Group
Can any of the company-specific risk be diversified away by investing in both Image Protect and WH Group 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 Image Protect and WH Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Image Protect and WH Group Limited, you can compare the effects of market volatilities on Image Protect and WH Group 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 Image Protect with a short position of WH Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Image Protect and WH Group.
Diversification Opportunities for Image Protect and WH Group
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Image and WHGRF is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Image Protect and WH Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WH Group Limited and Image Protect 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 Image Protect are associated (or correlated) with WH Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WH Group Limited has no effect on the direction of Image Protect i.e., Image Protect and WH Group go up and down completely randomly.
Pair Corralation between Image Protect and WH Group
If you would invest 0.02 in Image Protect on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Image Protect or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
Image Protect vs. WH Group Limited
Performance |
| Timeline |
| Image Protect |
| WH Group Limited |
Image Protect and WH Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Image Protect and WH Group
The main advantage of trading using opposite Image Protect and WH Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Image Protect position performs unexpectedly, WH Group 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 WH Group will offset losses from the drop in WH Group's long position.| Image Protect vs. AB International Group | Image Protect vs. Bowmo Inc | Image Protect vs. Protek Capital | Image Protect vs. Ackroo Inc |
| WH Group vs. Premier Foods Plc | WH Group vs. Torque Lifestyle Brands | WH Group vs. Naturally Splendid Enterprises | WH Group vs. Aryzta AG PK |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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