Correlation Between Major Cineplex and WHA Premium
Can any of the company-specific risk be diversified away by investing in both Major Cineplex 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 Major Cineplex and WHA Premium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Major Cineplex Lifestyle and WHA Premium Growth, you can compare the effects of market volatilities on Major Cineplex 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 Major Cineplex with a short position of WHA Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Major Cineplex and WHA Premium.
Diversification Opportunities for Major Cineplex and WHA Premium
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Major and WHA is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Major Cineplex Lifestyle 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 Major Cineplex 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 Major Cineplex Lifestyle 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 Major Cineplex i.e., Major Cineplex and WHA Premium go up and down completely randomly.
Pair Corralation between Major Cineplex and WHA Premium
Assuming the 90 days trading horizon Major Cineplex Lifestyle is expected to generate 0.83 times more return on investment than WHA Premium. However, Major Cineplex Lifestyle is 1.21 times less risky than WHA Premium. It trades about -0.02 of its potential returns per unit of risk. WHA Premium Growth is currently generating about -0.07 per unit of risk. If you would invest 416.00 in Major Cineplex Lifestyle on August 27, 2024 and sell it today you would lose (2.00) from holding Major Cineplex Lifestyle or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Major Cineplex Lifestyle vs. WHA Premium Growth
Performance |
| Timeline |
| Major Cineplex Lifestyle |
| WHA Premium Growth |
Major Cineplex and WHA Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Major Cineplex and WHA Premium
The main advantage of trading using opposite Major Cineplex and WHA Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Major Cineplex 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.| Major Cineplex vs. Central Pattana Public | Major Cineplex vs. Digital Telecommunications Infrastructure | Major Cineplex vs. Impact Growth REIT | Major Cineplex vs. WHA Premium Growth |
| WHA Premium vs. WHA Public | WHA Premium vs. CPN Retail Growth | WHA Premium vs. Impact Growth REIT | WHA Premium vs. Digital Telecommunications Infrastructure |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |