Correlation Between WICE Logistics and Leo Global
Can any of the company-specific risk be diversified away by investing in both WICE Logistics and Leo Global 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 Leo Global 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 Leo Global Logistics, you can compare the effects of market volatilities on WICE Logistics and Leo Global 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 Leo Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of WICE Logistics and Leo Global.
Diversification Opportunities for WICE Logistics and Leo Global
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WICE and Leo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding WICE Logistics PCL and Leo Global Logistics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leo Global Logistics 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 Leo Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leo Global Logistics has no effect on the direction of WICE Logistics i.e., WICE Logistics and Leo Global go up and down completely randomly.
Pair Corralation between WICE Logistics and Leo Global
Assuming the 90 days trading horizon WICE Logistics PCL is expected to generate 0.53 times more return on investment than Leo Global. However, WICE Logistics PCL is 1.9 times less risky than Leo Global. It trades about -0.3 of its potential returns per unit of risk. Leo Global Logistics is currently generating about -0.34 per unit of risk. If you would invest 278.00 in WICE Logistics PCL on January 13, 2025 and sell it today you would lose (30.00) from holding WICE Logistics PCL or give up 10.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WICE Logistics PCL vs. Leo Global Logistics
Performance |
| Timeline |
| WICE Logistics PCL |
| Leo Global Logistics |
WICE Logistics and Leo Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WICE Logistics and Leo Global
The main advantage of trading using opposite WICE Logistics and Leo Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WICE Logistics position performs unexpectedly, Leo Global 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 Leo Global will offset losses from the drop in Leo Global's long position.| WICE Logistics vs. Chularat Hospital Public | WICE Logistics vs. Triple i Logistics | WICE Logistics vs. VGI Public | WICE Logistics vs. Thai Union Group |
| Leo Global vs. Mega Lifesciences Public | Leo Global vs. Sonic Interfreight Public | Leo Global vs. Jay Mart Public | Leo Global vs. AP Public |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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