Correlation Between WHA Public and Triple I
Can any of the company-specific risk be diversified away by investing in both WHA Public and Triple I 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 Triple I into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Public and Triple i Logistics, you can compare the effects of market volatilities on WHA Public and Triple I 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 Triple I. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Public and Triple I.
Diversification Opportunities for WHA Public and Triple I
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between WHA and Triple is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding WHA Public and Triple i Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple i Logistics 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 Triple I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple i Logistics has no effect on the direction of WHA Public i.e., WHA Public and Triple I go up and down completely randomly.
Pair Corralation between WHA Public and Triple I
Assuming the 90 days trading horizon WHA Public is expected to generate 58.73 times less return on investment than Triple I. But when comparing it to its historical volatility, WHA Public is 36.68 times less risky than Triple I. It trades about 0.03 of its potential returns per unit of risk. Triple i Logistics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 968.00 in Triple i Logistics on September 2, 2024 and sell it today you would lose (398.00) from holding Triple i Logistics or give up 41.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Public vs. Triple i Logistics
Performance |
| Timeline |
| WHA Public |
| Triple i Logistics |
WHA Public and Triple I Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Public and Triple I
The main advantage of trading using opposite WHA Public and Triple I positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Public position performs unexpectedly, Triple I 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 Triple I will offset losses from the drop in Triple I's long position.The idea behind WHA Public and Triple i Logistics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Triple I vs. Gulf Energy Development | Triple I vs. Energy Absolute Public | Triple I vs. WHA Public | Triple I 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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