Correlation Between Wilmar International and OneApex
Can any of the company-specific risk be diversified away by investing in both Wilmar International and OneApex 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 Wilmar International and OneApex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilmar International Limited and OneApex Limited, you can compare the effects of market volatilities on Wilmar International and OneApex 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 Wilmar International with a short position of OneApex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilmar International and OneApex.
Diversification Opportunities for Wilmar International and OneApex
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wilmar and OneApex is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Wilmar International Limited and OneApex Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneApex Limited and Wilmar International 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 Wilmar International Limited are associated (or correlated) with OneApex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneApex Limited has no effect on the direction of Wilmar International i.e., Wilmar International and OneApex go up and down completely randomly.
Pair Corralation between Wilmar International and OneApex
Assuming the 90 days trading horizon Wilmar International is expected to generate 22.47 times less return on investment than OneApex. But when comparing it to its historical volatility, Wilmar International Limited is 9.08 times less risky than OneApex. It trades about 0.09 of its potential returns per unit of risk. OneApex Limited is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5.00 in OneApex Limited on September 5, 2024 and sell it today you would earn a total of 2.25 from holding OneApex Limited or generate 45.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilmar International Limited vs. OneApex Limited
Performance |
| Timeline |
| Wilmar International |
| OneApex Limited |
Wilmar International and OneApex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilmar International and OneApex
The main advantage of trading using opposite Wilmar International and OneApex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilmar International position performs unexpectedly, OneApex 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 OneApex will offset losses from the drop in OneApex's long position.The idea behind Wilmar International Limited and OneApex Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stocks Directory Find actively traded stocks across global markets |