Correlation Between WHA Premium and AIM Industrial
Can any of the company-specific risk be diversified away by investing in both WHA Premium and AIM Industrial 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 Premium and AIM Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Premium Growth and AIM Industrial Growth, you can compare the effects of market volatilities on WHA Premium and AIM Industrial 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 Premium with a short position of AIM Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Premium and AIM Industrial.
Diversification Opportunities for WHA Premium and AIM Industrial
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WHA and AIM is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding WHA Premium Growth and AIM Industrial Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM Industrial Growth and WHA Premium 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 Premium Growth are associated (or correlated) with AIM Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM Industrial Growth has no effect on the direction of WHA Premium i.e., WHA Premium and AIM Industrial go up and down completely randomly.
Pair Corralation between WHA Premium and AIM Industrial
Assuming the 90 days trading horizon WHA Premium Growth is expected to generate 1.15 times more return on investment than AIM Industrial. However, WHA Premium is 1.15 times more volatile than AIM Industrial Growth. It trades about -0.06 of its potential returns per unit of risk. AIM Industrial Growth is currently generating about -0.07 per unit of risk. If you would invest 1,010 in WHA Premium Growth on November 2, 2024 and sell it today you would lose (10.00) from holding WHA Premium Growth or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
WHA Premium Growth vs. AIM Industrial Growth
Performance |
| Timeline |
| WHA Premium Growth |
| AIM Industrial Growth |
WHA Premium and AIM Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Premium and AIM Industrial
The main advantage of trading using opposite WHA Premium and AIM Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Premium position performs unexpectedly, AIM Industrial 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 AIM Industrial will offset losses from the drop in AIM Industrial's long position.| WHA Premium vs. WHA Public | WHA Premium vs. CPN Retail Growth | WHA Premium vs. Impact Growth REIT | WHA Premium vs. Digital Telecommunications Infrastructure |
| AIM Industrial vs. Amata Summit Growth | AIM Industrial vs. WHA Premium Growth | AIM Industrial vs. Digital Telecommunications Infrastructure | AIM Industrial vs. Quality Houses Property |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |