Correlation Between WHA Utilities and Central Plaza
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By analyzing existing cross correlation between WHA Utilities and and Central Plaza Hotel, you can compare the effects of market volatilities on WHA Utilities and Central Plaza 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 Utilities with a short position of Central Plaza. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Utilities and Central Plaza.
Diversification Opportunities for WHA Utilities and Central Plaza
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between WHA and Central is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding WHA Utilities and and Central Plaza Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plaza Hotel and WHA Utilities 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 Utilities and are associated (or correlated) with Central Plaza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plaza Hotel has no effect on the direction of WHA Utilities i.e., WHA Utilities and Central Plaza go up and down completely randomly.
Pair Corralation between WHA Utilities and Central Plaza
Assuming the 90 days trading horizon WHA Utilities is expected to generate 50.88 times less return on investment than Central Plaza. But when comparing it to its historical volatility, WHA Utilities and is 41.31 times less risky than Central Plaza. It trades about 0.05 of its potential returns per unit of risk. Central Plaza Hotel is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,938 in Central Plaza Hotel on September 14, 2024 and sell it today you would lose (1,438) from holding Central Plaza Hotel or give up 29.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
WHA Utilities and vs. Central Plaza Hotel
Performance |
| Timeline |
| WHA Utilities |
| Central Plaza Hotel |
WHA Utilities and Central Plaza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Utilities and Central Plaza
The main advantage of trading using opposite WHA Utilities and Central Plaza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Utilities position performs unexpectedly, Central Plaza 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 Central Plaza will offset losses from the drop in Central Plaza's long position.| WHA Utilities vs. WHA Public | WHA Utilities vs. Global Power Synergy | WHA Utilities vs. TPI Polene Power | WHA Utilities vs. Bangkok Expressway and |
| Central Plaza vs. AJ Advance Technology | Central Plaza vs. Silicon Craft Technology | Central Plaza vs. WHA Utilities and | Central Plaza vs. Earth Tech Environment |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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