Correlation Between Lohakit Metal and WHA Industrial
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and WHA Industrial 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 Lohakit Metal and WHA Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lohakit Metal Public and WHA Industrial Leasehold, you can compare the effects of market volatilities on Lohakit Metal and WHA Industrial 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 Lohakit Metal with a short position of WHA Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and WHA Industrial.
Diversification Opportunities for Lohakit Metal and WHA Industrial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lohakit and WHA is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and WHA Industrial Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Industrial Leasehold and Lohakit Metal 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 Lohakit Metal Public are associated (or correlated) with WHA Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Industrial Leasehold has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and WHA Industrial go up and down completely randomly.
Pair Corralation between Lohakit Metal and WHA Industrial
Assuming the 90 days trading horizon Lohakit Metal is expected to generate 35.25 times less return on investment than WHA Industrial. But when comparing it to its historical volatility, Lohakit Metal Public is 1.87 times less risky than WHA Industrial. It trades about 0.0 of its potential returns per unit of risk. WHA Industrial Leasehold is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 641.00 in WHA Industrial Leasehold on August 31, 2024 and sell it today you would earn a total of 9.00 from holding WHA Industrial Leasehold or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohakit Metal Public vs. WHA Industrial Leasehold
Performance |
| Timeline |
| Lohakit Metal Public |
| WHA Industrial Leasehold |
Lohakit Metal and WHA Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and WHA Industrial
The main advantage of trading using opposite Lohakit Metal and WHA Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal position performs unexpectedly, WHA Industrial 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 Industrial will offset losses from the drop in WHA Industrial's long position.| Lohakit Metal vs. Gulf Energy Development | Lohakit Metal vs. Energy Absolute Public | Lohakit Metal vs. WHA Public | Lohakit Metal vs. TRC Construction Public |
| WHA Industrial vs. LH Shopping Centers | WHA Industrial vs. HEMARAJ INDUSTRIAL PROPERTY | WHA Industrial vs. Land and Houses |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |