Correlation Between WHA Public and Grand Canal
Can any of the company-specific risk be diversified away by investing in both WHA Public and Grand Canal 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 WHA Public and Grand Canal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Public and Grand Canal Land, you can compare the effects of market volatilities on WHA Public and Grand Canal 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 WHA Public with a short position of Grand Canal. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Public and Grand Canal.
Diversification Opportunities for WHA Public and Grand Canal
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WHA and Grand is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding WHA Public and Grand Canal Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canal Land and WHA Public 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 WHA Public are associated (or correlated) with Grand Canal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canal Land has no effect on the direction of WHA Public i.e., WHA Public and Grand Canal go up and down completely randomly.
Pair Corralation between WHA Public and Grand Canal
Assuming the 90 days trading horizon WHA Public is expected to generate 23.45 times less return on investment than Grand Canal. But when comparing it to its historical volatility, WHA Public is 26.01 times less risky than Grand Canal. It trades about 0.04 of its potential returns per unit of risk. Grand Canal Land is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Grand Canal Land on October 24, 2024 and sell it today you would lose (99.00) from holding Grand Canal Land or give up 44.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
WHA Public vs. Grand Canal Land
Performance |
| Timeline |
| WHA Public |
| Grand Canal Land |
WHA Public and Grand Canal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Public and Grand Canal
The main advantage of trading using opposite WHA Public and Grand Canal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Public position performs unexpectedly, Grand Canal 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 Grand Canal will offset losses from the drop in Grand Canal's long position.| WHA Public vs. Bangkok Dusit Medical | WHA Public vs. Land and Houses | WHA Public vs. BTS Group Holdings | WHA Public vs. Bangkok Expressway and |
| Grand Canal vs. WHA Public | Grand Canal vs. Banpu Public | Grand Canal vs. Advanced Info Service | Grand Canal vs. Land and Houses |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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