Correlation Between Stock Exchange and WHA Public
Can any of the company-specific risk be diversified away by investing in both Stock Exchange 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 Stock Exchange and WHA Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and WHA Public, you can compare the effects of market volatilities on Stock Exchange 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 Stock Exchange with a short position of WHA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and WHA Public.
Diversification Opportunities for Stock Exchange and WHA Public
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stock and WHA is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and WHA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Public and Stock Exchange 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 Stock Exchange Of 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 Stock Exchange i.e., Stock Exchange and WHA Public go up and down completely randomly.
Pair Corralation between Stock Exchange and WHA Public
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the WHA Public. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 3.42 times less risky than WHA Public. The index trades about -0.09 of its potential returns per unit of risk. The WHA Public is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 568.00 in WHA Public on August 31, 2024 and sell it today you would lose (8.00) from holding WHA Public or give up 1.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. WHA Public
Performance |
| Timeline |
Stock Exchange and WHA Public Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
WHA Public
Pair trading matchups for WHA Public
Pair Trading with Stock Exchange and WHA Public
The main advantage of trading using opposite Stock Exchange and WHA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange 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.| Stock Exchange vs. Jasmine Telecom Systems | Stock Exchange vs. TMBThanachart Bank Public | Stock Exchange vs. Information and Communication | Stock Exchange vs. TISCO Financial Group |
| WHA Public vs. Land and Houses | WHA Public vs. Bangkok Bank Public | WHA Public vs. Siri Prime Office | WHA Public vs. Charoen Pokphand Foods |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| 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. |