Correlation Between WICE Logistics and Sonic Interfreight
Can any of the company-specific risk be diversified away by investing in both WICE Logistics and Sonic Interfreight 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 Sonic Interfreight 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 Sonic Interfreight Public, you can compare the effects of market volatilities on WICE Logistics and Sonic Interfreight 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 Sonic Interfreight. Check out your portfolio center. Please also check ongoing floating volatility patterns of WICE Logistics and Sonic Interfreight.
Diversification Opportunities for WICE Logistics and Sonic Interfreight
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between WICE and Sonic is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding WICE Logistics PCL and Sonic Interfreight Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonic Interfreight Public 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 Sonic Interfreight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonic Interfreight Public has no effect on the direction of WICE Logistics i.e., WICE Logistics and Sonic Interfreight go up and down completely randomly.
Pair Corralation between WICE Logistics and Sonic Interfreight
Assuming the 90 days trading horizon WICE Logistics PCL is expected to under-perform the Sonic Interfreight. In addition to that, WICE Logistics is 1.19 times more volatile than Sonic Interfreight Public. It trades about -0.08 of its total potential returns per unit of risk. Sonic Interfreight Public is currently generating about -0.01 per unit of volatility. If you would invest 200.00 in Sonic Interfreight Public on January 15, 2025 and sell it today you would lose (45.00) from holding Sonic Interfreight Public or give up 22.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WICE Logistics PCL vs. Sonic Interfreight Public
Performance |
| Timeline |
| WICE Logistics PCL |
| Sonic Interfreight Public |
WICE Logistics and Sonic Interfreight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WICE Logistics and Sonic Interfreight
The main advantage of trading using opposite WICE Logistics and Sonic Interfreight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WICE Logistics position performs unexpectedly, Sonic Interfreight 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 Sonic Interfreight will offset losses from the drop in Sonic Interfreight'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 |
| Sonic Interfreight vs. North East Rubbers | Sonic Interfreight vs. KCE Electronics Public | Sonic Interfreight vs. AP Public | Sonic Interfreight vs. S P V |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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