Correlation Between Wave Entertainment and WHA Public
Can any of the company-specific risk be diversified away by investing in both Wave Entertainment 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 Wave Entertainment and WHA Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wave Entertainment Public and WHA Public, you can compare the effects of market volatilities on Wave Entertainment 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 Wave Entertainment with a short position of WHA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wave Entertainment and WHA Public.
Diversification Opportunities for Wave Entertainment and WHA Public
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wave and WHA is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Wave Entertainment Public and WHA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Public and Wave Entertainment 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 Wave Entertainment 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 Wave Entertainment i.e., Wave Entertainment and WHA Public go up and down completely randomly.
Pair Corralation between Wave Entertainment and WHA Public
Assuming the 90 days trading horizon Wave Entertainment Public is expected to under-perform the WHA Public. In addition to that, Wave Entertainment is 2.32 times more volatile than WHA Public. It trades about -0.11 of its total potential returns per unit of risk. WHA Public is currently generating about 0.05 per unit of volatility. If you would invest 553.00 in WHA Public on September 13, 2024 and sell it today you would earn a total of 17.00 from holding WHA Public or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wave Entertainment Public vs. WHA Public
Performance |
| Timeline |
| Wave Entertainment Public |
| WHA Public |
Wave Entertainment and WHA Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wave Entertainment and WHA Public
The main advantage of trading using opposite Wave Entertainment and WHA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wave Entertainment 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.| Wave Entertainment vs. Vibhavadi Medical Center | Wave Entertainment vs. TWZ Public | Wave Entertainment vs. VGI Public | Wave Entertainment vs. Aqua Public |
| WHA Public vs. Bangkok Dusit Medical | WHA Public vs. Land and Houses | WHA Public vs. BTS Group Holdings | WHA Public vs. Bangkok Expressway and |
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.
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