Correlation Between WHA Industrial and SC Asset
Can any of the company-specific risk be diversified away by investing in both WHA Industrial and SC Asset 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 SC Asset 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 SC Asset, you can compare the effects of market volatilities on WHA Industrial and SC Asset 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 SC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Industrial and SC Asset.
Diversification Opportunities for WHA Industrial and SC Asset
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WHA and SC Asset is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding WHA Industrial Leasehold and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset 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 SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of WHA Industrial i.e., WHA Industrial and SC Asset go up and down completely randomly.
Pair Corralation between WHA Industrial and SC Asset
Assuming the 90 days trading horizon WHA Industrial is expected to generate 107.48 times less return on investment than SC Asset. But when comparing it to its historical volatility, WHA Industrial Leasehold is 40.88 times less risky than SC Asset. It trades about 0.02 of its potential returns per unit of risk. SC Asset is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 374.00 in SC Asset on September 14, 2024 and sell it today you would lose (92.00) from holding SC Asset or give up 24.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Industrial Leasehold vs. SC Asset
Performance |
| Timeline |
| WHA Industrial Leasehold |
| SC Asset |
WHA Industrial and SC Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Industrial and SC Asset
The main advantage of trading using opposite WHA Industrial and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Industrial position performs unexpectedly, SC Asset 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 SC Asset will offset losses from the drop in SC Asset'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 |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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