Correlation Between WHA Industrial and 2S Metal
Can any of the company-specific risk be diversified away by investing in both WHA Industrial and 2S Metal 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 Industrial and 2S Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Industrial Leasehold and 2S Metal Public, you can compare the effects of market volatilities on WHA Industrial and 2S Metal 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 Industrial with a short position of 2S Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Industrial and 2S Metal.
Diversification Opportunities for WHA Industrial and 2S Metal
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WHA and 2S Metal is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding WHA Industrial Leasehold and 2S Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 2S Metal Public and WHA Industrial 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 Industrial Leasehold are associated (or correlated) with 2S Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 2S Metal Public has no effect on the direction of WHA Industrial i.e., WHA Industrial and 2S Metal go up and down completely randomly.
Pair Corralation between WHA Industrial and 2S Metal
Assuming the 90 days trading horizon WHA Industrial Leasehold is expected to generate 1.02 times more return on investment than 2S Metal. However, WHA Industrial is 1.02 times more volatile than 2S Metal Public. It trades about 0.17 of its potential returns per unit of risk. 2S Metal Public is currently generating about -0.04 per unit of risk. If you would invest 583.00 in WHA Industrial Leasehold on September 2, 2024 and sell it today you would earn a total of 77.00 from holding WHA Industrial Leasehold or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Industrial Leasehold vs. 2S Metal Public
Performance |
| Timeline |
| WHA Industrial Leasehold |
| 2S Metal Public |
WHA Industrial and 2S Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Industrial and 2S Metal
The main advantage of trading using opposite WHA Industrial and 2S Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Industrial position performs unexpectedly, 2S Metal 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 2S Metal will offset losses from the drop in 2S Metal's long position.| WHA Industrial vs. Quality Houses Property | WHA Industrial vs. Ticon Freehold and | WHA Industrial vs. CPN Retail Growth | WHA Industrial vs. Prospect Logistics and |
| 2S Metal vs. Diamond Building Products | 2S Metal vs. MCS Steel Public | 2S Metal vs. Asia Green Energy | 2S Metal vs. Hwa Fong Rubber |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |