Correlation Between WHA Public and SCB X
Can any of the company-specific risk be diversified away by investing in both WHA Public and SCB X 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 SCB X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Public and SCB X Public, you can compare the effects of market volatilities on WHA Public and SCB X 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 SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Public and SCB X.
Diversification Opportunities for WHA Public and SCB X
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WHA and SCB is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding WHA Public and SCB X Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCB X Public 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 SCB X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCB X Public has no effect on the direction of WHA Public i.e., WHA Public and SCB X go up and down completely randomly.
Pair Corralation between WHA Public and SCB X
Assuming the 90 days trading horizon WHA Public is expected to generate 6.29 times less return on investment than SCB X. In addition to that, WHA Public is 2.99 times more volatile than SCB X Public. It trades about 0.02 of its total potential returns per unit of risk. SCB X Public is currently generating about 0.34 per unit of volatility. If you would invest 11,350 in SCB X Public on September 13, 2024 and sell it today you would earn a total of 450.00 from holding SCB X Public or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Public vs. SCB X Public
Performance |
| Timeline |
| WHA Public |
| SCB X Public |
WHA Public and SCB X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Public and SCB X
The main advantage of trading using opposite WHA Public and SCB X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Public position performs unexpectedly, SCB X 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 SCB X will offset losses from the drop in SCB X'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 |
| SCB X vs. KGI Securities Public | SCB X vs. Lalin Property Public | SCB X vs. Hwa Fong Rubber | SCB X vs. MCS Steel Public |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |