Correlation Between WHA Utilities and Stock Exchange
Can any of the company-specific risk be diversified away by investing in both WHA Utilities and Stock Exchange 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 Utilities and Stock Exchange into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Utilities and and Stock Exchange Of, you can compare the effects of market volatilities on WHA Utilities and Stock Exchange 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 Stock Exchange. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Utilities and Stock Exchange.
Diversification Opportunities for WHA Utilities and Stock Exchange
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WHA and Stock is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding WHA Utilities and and Stock Exchange Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Exchange 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 Stock Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Exchange has no effect on the direction of WHA Utilities i.e., WHA Utilities and Stock Exchange go up and down completely randomly.
Pair Corralation between WHA Utilities and Stock Exchange
Assuming the 90 days trading horizon WHA Utilities and is expected to under-perform the Stock Exchange. In addition to that, WHA Utilities is 2.94 times more volatile than Stock Exchange Of. It trades about -0.25 of its total potential returns per unit of risk. Stock Exchange Of is currently generating about -0.09 per unit of volatility. If you would invest 144,720 in Stock Exchange Of on August 31, 2024 and sell it today you would lose (1,919) from holding Stock Exchange Of or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Utilities and vs. Stock Exchange Of
Performance |
| Timeline |
WHA Utilities and Stock Exchange Volatility Contrast
Predicted Return Density |
| Returns |
WHA Utilities and
Pair trading matchups for WHA Utilities
Stock Exchange Of
Pair trading matchups for Stock Exchange
Pair Trading with WHA Utilities and Stock Exchange
The main advantage of trading using opposite WHA Utilities and Stock Exchange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Utilities position performs unexpectedly, Stock Exchange 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 Stock Exchange will offset losses from the drop in Stock Exchange'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 |
| Stock Exchange vs. Jasmine Telecom Systems | Stock Exchange vs. TMBThanachart Bank Public | Stock Exchange vs. Information and Communication | Stock Exchange vs. TISCO Financial Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |