Correlation Between WICE Logistics and KERRY EXPRESS
Can any of the company-specific risk be diversified away by investing in both WICE Logistics and KERRY EXPRESS 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 WICE Logistics and KERRY EXPRESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WICE Logistics PCL and KERRY EXPRESS, you can compare the effects of market volatilities on WICE Logistics and KERRY EXPRESS 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 WICE Logistics with a short position of KERRY EXPRESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of WICE Logistics and KERRY EXPRESS.
Diversification Opportunities for WICE Logistics and KERRY EXPRESS
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WICE and KERRY is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding WICE Logistics PCL and KERRY EXPRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERRY EXPRESS and WICE Logistics 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 WICE Logistics PCL are associated (or correlated) with KERRY EXPRESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERRY EXPRESS has no effect on the direction of WICE Logistics i.e., WICE Logistics and KERRY EXPRESS go up and down completely randomly.
Pair Corralation between WICE Logistics and KERRY EXPRESS
Assuming the 90 days trading horizon WICE Logistics PCL is expected to generate 0.45 times more return on investment than KERRY EXPRESS. However, WICE Logistics PCL is 2.2 times less risky than KERRY EXPRESS. It trades about -0.07 of its potential returns per unit of risk. KERRY EXPRESS is currently generating about -0.13 per unit of risk. If you would invest 650.00 in WICE Logistics PCL on September 2, 2024 and sell it today you would lose (182.00) from holding WICE Logistics PCL or give up 28.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WICE Logistics PCL vs. KERRY EXPRESS
Performance |
| Timeline |
| WICE Logistics PCL |
| KERRY EXPRESS |
WICE Logistics and KERRY EXPRESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WICE Logistics and KERRY EXPRESS
The main advantage of trading using opposite WICE Logistics and KERRY EXPRESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WICE Logistics position performs unexpectedly, KERRY EXPRESS 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 KERRY EXPRESS will offset losses from the drop in KERRY EXPRESS's long position.| WICE Logistics vs. Gulf Energy Development | WICE Logistics vs. Energy Absolute Public | WICE Logistics vs. WHA Public | WICE Logistics vs. Bangkok Expressway and |
| KERRY EXPRESS vs. Thai Coating Industrial | KERRY EXPRESS vs. Sun Vending Technology | KERRY EXPRESS vs. Lohakit Metal Public | KERRY EXPRESS vs. President Automobile Industries |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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