Correlation Between Wesure Global and Spuntech
Can any of the company-specific risk be diversified away by investing in both Wesure Global and Spuntech 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 Spuntech 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 Spuntech, you can compare the effects of market volatilities on Wesure Global and Spuntech 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 Spuntech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesure Global and Spuntech.
Diversification Opportunities for Wesure Global and Spuntech
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wesure and Spuntech is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Wesure Global Tech and Spuntech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spuntech 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 Spuntech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spuntech has no effect on the direction of Wesure Global i.e., Wesure Global and Spuntech go up and down completely randomly.
Pair Corralation between Wesure Global and Spuntech
Assuming the 90 days trading horizon Wesure Global Tech is expected to under-perform the Spuntech. In addition to that, Wesure Global is 2.03 times more volatile than Spuntech. It trades about -0.07 of its total potential returns per unit of risk. Spuntech is currently generating about 0.13 per unit of volatility. If you would invest 35,200 in Spuntech on January 24, 2025 and sell it today you would earn a total of 1,700 from holding Spuntech or generate 4.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesure Global Tech vs. Spuntech
Performance |
| Timeline |
| Wesure Global Tech |
| Spuntech |
Wesure Global and Spuntech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesure Global and Spuntech
The main advantage of trading using opposite Wesure Global and Spuntech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesure Global position performs unexpectedly, Spuntech 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 Spuntech will offset losses from the drop in Spuntech's long position.| Wesure Global vs. Israel Discount Bank | Wesure Global vs. Aura Investments | Wesure Global vs. First International Bank | Wesure Global vs. Israel China Biotechnology |
| Spuntech vs. Neto ME Holdings | Spuntech vs. Aryt Industries | Spuntech vs. Kerur Holdings | Spuntech vs. Scope Metals Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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