Correlation Between Wesure Global and Phinergy
Can any of the company-specific risk be diversified away by investing in both Wesure Global and Phinergy 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 Wesure Global and Phinergy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesure Global Tech and Phinergy, you can compare the effects of market volatilities on Wesure Global and Phinergy 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 Wesure Global with a short position of Phinergy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesure Global and Phinergy.
Diversification Opportunities for Wesure Global and Phinergy
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wesure and Phinergy is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Wesure Global Tech and Phinergy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phinergy and Wesure Global 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 Wesure Global Tech are associated (or correlated) with Phinergy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phinergy has no effect on the direction of Wesure Global i.e., Wesure Global and Phinergy go up and down completely randomly.
Pair Corralation between Wesure Global and Phinergy
Assuming the 90 days trading horizon Wesure Global Tech is expected to generate 0.7 times more return on investment than Phinergy. However, Wesure Global Tech is 1.42 times less risky than Phinergy. It trades about 0.23 of its potential returns per unit of risk. Phinergy is currently generating about -0.03 per unit of risk. If you would invest 11,780 in Wesure Global Tech on September 14, 2024 and sell it today you would earn a total of 41,190 from holding Wesure Global Tech or generate 349.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesure Global Tech vs. Phinergy
Performance |
| Timeline |
| Wesure Global Tech |
| Phinergy |
Wesure Global and Phinergy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesure Global and Phinergy
The main advantage of trading using opposite Wesure Global and Phinergy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesure Global position performs unexpectedly, Phinergy 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 Phinergy will offset losses from the drop in Phinergy's long position.| Wesure Global vs. Opal Balance | Wesure Global vs. B Communications | Wesure Global vs. Mivne Real Estate | Wesure Global vs. Photomyne |
| Phinergy vs. Clal Biotechnology Industries | Phinergy vs. Storage Drop Storage | Phinergy vs. Wesure Global Tech | Phinergy vs. Petrochemical |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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