Correlation Between WHA Public and Sena Development
Can any of the company-specific risk be diversified away by investing in both WHA Public and Sena Development 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 Sena Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Public and Sena Development Public, you can compare the effects of market volatilities on WHA Public and Sena Development 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 Sena Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Public and Sena Development.
Diversification Opportunities for WHA Public and Sena Development
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WHA and Sena is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding WHA Public and Sena Development Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sena Development 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 Sena Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sena Development Public has no effect on the direction of WHA Public i.e., WHA Public and Sena Development go up and down completely randomly.
Pair Corralation between WHA Public and Sena Development
Assuming the 90 days trading horizon WHA Public is expected to under-perform the Sena Development. In addition to that, WHA Public is 3.07 times more volatile than Sena Development Public. It trades about -0.13 of its total potential returns per unit of risk. Sena Development Public is currently generating about -0.08 per unit of volatility. If you would invest 234.00 in Sena Development Public on December 4, 2024 and sell it today you would lose (20.00) from holding Sena Development Public or give up 8.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.18% |
| Values | Daily Returns |
WHA Public vs. Sena Development Public
Performance |
| Timeline |
| WHA Public |
| Sena Development Public |
WHA Public and Sena Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Public and Sena Development
The main advantage of trading using opposite WHA Public and Sena Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Public position performs unexpectedly, Sena Development 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 Sena Development will offset losses from the drop in Sena Development'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 |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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