Correlation Between WHA Industrial and CPR Gomu
Can any of the company-specific risk be diversified away by investing in both WHA Industrial and CPR Gomu 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 CPR Gomu 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 CPR Gomu Industrial, you can compare the effects of market volatilities on WHA Industrial and CPR Gomu 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 CPR Gomu. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Industrial and CPR Gomu.
Diversification Opportunities for WHA Industrial and CPR Gomu
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WHA and CPR is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding WHA Industrial Leasehold and CPR Gomu Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPR Gomu Industrial 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 CPR Gomu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPR Gomu Industrial has no effect on the direction of WHA Industrial i.e., WHA Industrial and CPR Gomu go up and down completely randomly.
Pair Corralation between WHA Industrial and CPR Gomu
Assuming the 90 days trading horizon WHA Industrial Leasehold is expected to generate 1.24 times more return on investment than CPR Gomu. However, WHA Industrial is 1.24 times more volatile than CPR Gomu Industrial. It trades about -0.14 of its potential returns per unit of risk. CPR Gomu Industrial is currently generating about -0.21 per unit of risk. If you would invest 609.00 in WHA Industrial Leasehold on December 10, 2024 and sell it today you would lose (49.00) from holding WHA Industrial Leasehold or give up 8.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Industrial Leasehold vs. CPR Gomu Industrial
Performance |
| Timeline |
| WHA Industrial Leasehold |
| CPR Gomu Industrial |
WHA Industrial and CPR Gomu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Industrial and CPR Gomu
The main advantage of trading using opposite WHA Industrial and CPR Gomu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Industrial position performs unexpectedly, CPR Gomu 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 CPR Gomu will offset losses from the drop in CPR Gomu'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 |
| CPR Gomu vs. Salee Colour Public | CPR Gomu vs. Business Online PCL | CPR Gomu vs. Communication System Solution | CPR Gomu vs. CI Group 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |