Correlation Between WH Group and Protek Capital
Can any of the company-specific risk be diversified away by investing in both WH Group and Protek Capital 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 WH Group and Protek Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WH Group Limited and Protek Capital, you can compare the effects of market volatilities on WH Group and Protek Capital 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 WH Group with a short position of Protek Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of WH Group and Protek Capital.
Diversification Opportunities for WH Group and Protek Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WHGRF and Protek is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WH Group Limited and Protek Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Protek Capital and WH Group 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 WH Group Limited are associated (or correlated) with Protek Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Protek Capital has no effect on the direction of WH Group i.e., WH Group and Protek Capital go up and down completely randomly.
Pair Corralation between WH Group and Protek Capital
If you would invest 81.00 in WH Group Limited on October 23, 2024 and sell it today you would earn a total of 2.00 from holding WH Group Limited or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
WH Group Limited vs. Protek Capital
Performance |
| Timeline |
| WH Group Limited |
| Protek Capital |
WH Group and Protek Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WH Group and Protek Capital
The main advantage of trading using opposite WH Group and Protek Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WH Group position performs unexpectedly, Protek Capital 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 Protek Capital will offset losses from the drop in Protek Capital's long position.| WH Group vs. Premier Foods Plc | WH Group vs. Torque Lifestyle Brands | WH Group vs. Naturally Splendid Enterprises | WH Group vs. Aryzta AG PK |
| Protek Capital vs. On4 Communications | Protek Capital vs. Bowmo Inc | Protek Capital vs. BHPA Inc | Protek Capital vs. AB International 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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