Correlation Between Workspace Group and Helical Bar
Can any of the company-specific risk be diversified away by investing in both Workspace Group and Helical Bar 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 Workspace Group and Helical Bar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workspace Group PLC and Helical Bar Plc, you can compare the effects of market volatilities on Workspace Group and Helical Bar 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 Workspace Group with a short position of Helical Bar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workspace Group and Helical Bar.
Diversification Opportunities for Workspace Group and Helical Bar
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Workspace and Helical is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Workspace Group PLC and Helical Bar Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helical Bar Plc and Workspace Group 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 Workspace Group PLC are associated (or correlated) with Helical Bar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helical Bar Plc has no effect on the direction of Workspace Group i.e., Workspace Group and Helical Bar go up and down completely randomly.
Pair Corralation between Workspace Group and Helical Bar
Assuming the 90 days trading horizon Workspace Group PLC is expected to generate 0.91 times more return on investment than Helical Bar. However, Workspace Group PLC is 1.1 times less risky than Helical Bar. It trades about 0.03 of its potential returns per unit of risk. Helical Bar Plc is currently generating about 0.0 per unit of risk. If you would invest 54,800 in Workspace Group PLC on September 4, 2024 and sell it today you would earn a total of 400.00 from holding Workspace Group PLC or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workspace Group PLC vs. Helical Bar Plc
Performance |
| Timeline |
| Workspace Group PLC |
| Helical Bar Plc |
Workspace Group and Helical Bar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workspace Group and Helical Bar
The main advantage of trading using opposite Workspace Group and Helical Bar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workspace Group position performs unexpectedly, Helical Bar 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 Helical Bar will offset losses from the drop in Helical Bar's long position.| Workspace Group vs. PPHE Hotel Group | Workspace Group vs. Naked Wines plc | Workspace Group vs. Bellevue Healthcare Trust | Workspace Group vs. Virgin Wines UK |
| Helical Bar vs. Fulcrum Metals PLC | Helical Bar vs. Sovereign Metals | Helical Bar vs. Liontrust Asset Management | Helical Bar vs. AfriTin Mining |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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