Correlation Between WHA Public and VGI Public
Can any of the company-specific risk be diversified away by investing in both WHA Public and VGI Public 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 VGI Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Public and VGI Public, you can compare the effects of market volatilities on WHA Public and VGI Public 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 VGI Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Public and VGI Public.
Diversification Opportunities for WHA Public and VGI Public
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WHA and VGI is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding WHA Public and VGI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VGI 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 VGI Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VGI Public has no effect on the direction of WHA Public i.e., WHA Public and VGI Public go up and down completely randomly.
Pair Corralation between WHA Public and VGI Public
Assuming the 90 days trading horizon WHA Public is expected to generate 238.08 times less return on investment than VGI Public. But when comparing it to its historical volatility, WHA Public is 36.14 times less risky than VGI Public. It trades about 0.01 of its potential returns per unit of risk. VGI Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 171.00 in VGI Public on November 3, 2024 and sell it today you would earn a total of 133.00 from holding VGI Public or generate 77.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
WHA Public vs. VGI Public
Performance |
| Timeline |
| WHA Public |
| VGI Public |
WHA Public and VGI Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Public and VGI Public
The main advantage of trading using opposite WHA Public and VGI Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Public position performs unexpectedly, VGI Public 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 VGI Public will offset losses from the drop in VGI Public'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 |
| VGI Public vs. BTS Group Holdings | VGI Public vs. WHA Public | VGI Public vs. Plan B Media | VGI Public vs. Gulf Energy Development |
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.
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