Correlation Between Intouch Holdings and WHA Public
Can any of the company-specific risk be diversified away by investing in both Intouch Holdings 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 Intouch Holdings and WHA Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intouch Holdings Public and WHA Public, you can compare the effects of market volatilities on Intouch Holdings 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 Intouch Holdings with a short position of WHA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Holdings and WHA Public.
Diversification Opportunities for Intouch Holdings and WHA Public
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intouch and WHA is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Holdings Public and WHA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Public and Intouch Holdings 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 Intouch Holdings Public 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 Intouch Holdings i.e., Intouch Holdings and WHA Public go up and down completely randomly.
Pair Corralation between Intouch Holdings and WHA Public
Assuming the 90 days trading horizon Intouch Holdings Public is expected to generate 0.75 times more return on investment than WHA Public. However, Intouch Holdings Public is 1.34 times less risky than WHA Public. It trades about 0.05 of its potential returns per unit of risk. WHA Public is currently generating about -0.17 per unit of risk. If you would invest 9,775 in Intouch Holdings Public on October 25, 2024 and sell it today you would earn a total of 125.00 from holding Intouch Holdings Public or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intouch Holdings Public vs. WHA Public
Performance |
| Timeline |
| Intouch Holdings Public |
| WHA Public |
Intouch Holdings and WHA Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intouch Holdings and WHA Public
The main advantage of trading using opposite Intouch Holdings and WHA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intouch Holdings 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.| Intouch Holdings vs. Advanced Info Service | Intouch Holdings vs. PTT Global Chemical | Intouch Holdings vs. PTT Public | Intouch Holdings vs. CP ALL Public |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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