Correlation Between WH Group and Webstar Technology
Can any of the company-specific risk be diversified away by investing in both WH Group and Webstar Technology 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 Webstar Technology 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 Webstar Technology Group, you can compare the effects of market volatilities on WH Group and Webstar Technology 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 Webstar Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of WH Group and Webstar Technology.
Diversification Opportunities for WH Group and Webstar Technology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WHGRF and Webstar is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding WH Group Limited and Webstar Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webstar Technology 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 Webstar Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webstar Technology has no effect on the direction of WH Group i.e., WH Group and Webstar Technology go up and down completely randomly.
Pair Corralation between WH Group and Webstar Technology
Assuming the 90 days horizon WH Group Limited is expected to under-perform the Webstar Technology. But the pink sheet apears to be less risky and, when comparing its historical volatility, WH Group Limited is 5.09 times less risky than Webstar Technology. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Webstar Technology Group is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Webstar Technology Group on November 4, 2024 and sell it today you would lose (1.00) from holding Webstar Technology Group or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
WH Group Limited vs. Webstar Technology Group
Performance |
| Timeline |
| WH Group Limited |
| Webstar Technology |
WH Group and Webstar Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WH Group and Webstar Technology
The main advantage of trading using opposite WH Group and Webstar Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WH Group position performs unexpectedly, Webstar Technology 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 Webstar Technology will offset losses from the drop in Webstar Technology'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 |
| Webstar Technology vs. Protek Capital | Webstar Technology vs. Andiamo Corp | Webstar Technology vs. Social Life Network | Webstar Technology vs. GainClients |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |