Correlation Between Wicket Gaming and HUTCHMED DRC
Can any of the company-specific risk be diversified away by investing in both Wicket Gaming and HUTCHMED DRC 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 Wicket Gaming and HUTCHMED DRC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wicket Gaming AB and HUTCHMED DRC, you can compare the effects of market volatilities on Wicket Gaming and HUTCHMED DRC 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 Wicket Gaming with a short position of HUTCHMED DRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wicket Gaming and HUTCHMED DRC.
Diversification Opportunities for Wicket Gaming and HUTCHMED DRC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wicket and HUTCHMED is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Wicket Gaming AB and HUTCHMED DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUTCHMED DRC and Wicket Gaming 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 Wicket Gaming AB are associated (or correlated) with HUTCHMED DRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUTCHMED DRC has no effect on the direction of Wicket Gaming i.e., Wicket Gaming and HUTCHMED DRC go up and down completely randomly.
Pair Corralation between Wicket Gaming and HUTCHMED DRC
Assuming the 90 days horizon Wicket Gaming AB is expected to under-perform the HUTCHMED DRC. In addition to that, Wicket Gaming is 1.11 times more volatile than HUTCHMED DRC. It trades about -0.06 of its total potential returns per unit of risk. HUTCHMED DRC is currently generating about 0.04 per unit of volatility. If you would invest 1,407 in HUTCHMED DRC on August 31, 2024 and sell it today you would earn a total of 436.00 from holding HUTCHMED DRC or generate 30.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.72% |
| Values | Daily Returns |
Wicket Gaming AB vs. HUTCHMED DRC
Performance |
| Timeline |
| Wicket Gaming AB |
| HUTCHMED DRC |
Wicket Gaming and HUTCHMED DRC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wicket Gaming and HUTCHMED DRC
The main advantage of trading using opposite Wicket Gaming and HUTCHMED DRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wicket Gaming position performs unexpectedly, HUTCHMED DRC 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 HUTCHMED DRC will offset losses from the drop in HUTCHMED DRC's long position.| Wicket Gaming vs. Capcom Co Ltd | Wicket Gaming vs. CD Projekt SA | Wicket Gaming vs. Sega Sammy Holdings | Wicket Gaming vs. Playtika Holding Corp |
| HUTCHMED DRC vs. Bausch Health Companies | HUTCHMED DRC vs. Haleon plc | HUTCHMED DRC vs. Intracellular Th |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |