Correlation Between Winnergy Medical and CENTRAL RETAIL
Can any of the company-specific risk be diversified away by investing in both Winnergy Medical and CENTRAL RETAIL 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 Winnergy Medical and CENTRAL RETAIL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winnergy Medical Public and CENTRAL RETAIL P, you can compare the effects of market volatilities on Winnergy Medical and CENTRAL RETAIL 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 Winnergy Medical with a short position of CENTRAL RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winnergy Medical and CENTRAL RETAIL.
Diversification Opportunities for Winnergy Medical and CENTRAL RETAIL
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Winnergy and CENTRAL is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Winnergy Medical Public and CENTRAL RETAIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRAL RETAIL P and Winnergy Medical 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 Winnergy Medical Public are associated (or correlated) with CENTRAL RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTRAL RETAIL P has no effect on the direction of Winnergy Medical i.e., Winnergy Medical and CENTRAL RETAIL go up and down completely randomly.
Pair Corralation between Winnergy Medical and CENTRAL RETAIL
Assuming the 90 days trading horizon Winnergy Medical Public is expected to generate 0.97 times more return on investment than CENTRAL RETAIL. However, Winnergy Medical Public is 1.04 times less risky than CENTRAL RETAIL. It trades about -0.18 of its potential returns per unit of risk. CENTRAL RETAIL P is currently generating about -0.21 per unit of risk. If you would invest 206.00 in Winnergy Medical Public on September 5, 2024 and sell it today you would lose (21.00) from holding Winnergy Medical Public or give up 10.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winnergy Medical Public vs. CENTRAL RETAIL P
Performance |
| Timeline |
| Winnergy Medical Public |
| CENTRAL RETAIL P |
Winnergy Medical and CENTRAL RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winnergy Medical and CENTRAL RETAIL
The main advantage of trading using opposite Winnergy Medical and CENTRAL RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winnergy Medical position performs unexpectedly, CENTRAL RETAIL 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 CENTRAL RETAIL will offset losses from the drop in CENTRAL RETAIL's long position.| Winnergy Medical vs. II Group Public | Winnergy Medical vs. Dohome Public | Winnergy Medical vs. Humanica Public | Winnergy Medical vs. Jay Mart Public |
| CENTRAL RETAIL vs. 2S Metal Public | CENTRAL RETAIL vs. Thai Energy Storage | CENTRAL RETAIL vs. NSL Foods Public | CENTRAL RETAIL 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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