Correlation Between Wang Lee and Concrete Pumping
Can any of the company-specific risk be diversified away by investing in both Wang Lee and Concrete Pumping 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 Wang Lee and Concrete Pumping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wang Lee Group, and Concrete Pumping Holdings, you can compare the effects of market volatilities on Wang Lee and Concrete Pumping 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 Wang Lee with a short position of Concrete Pumping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wang Lee and Concrete Pumping.
Diversification Opportunities for Wang Lee and Concrete Pumping
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wang and Concrete is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Wang Lee Group, and Concrete Pumping Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concrete Pumping Holdings and Wang Lee 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 Wang Lee Group, are associated (or correlated) with Concrete Pumping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concrete Pumping Holdings has no effect on the direction of Wang Lee i.e., Wang Lee and Concrete Pumping go up and down completely randomly.
Pair Corralation between Wang Lee and Concrete Pumping
Given the investment horizon of 90 days Wang Lee Group, is expected to generate 3.25 times more return on investment than Concrete Pumping. However, Wang Lee is 3.25 times more volatile than Concrete Pumping Holdings. It trades about 0.14 of its potential returns per unit of risk. Concrete Pumping Holdings is currently generating about -0.03 per unit of risk. If you would invest 110.00 in Wang Lee Group, on August 28, 2024 and sell it today you would earn a total of 425.00 from holding Wang Lee Group, or generate 386.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wang Lee Group, vs. Concrete Pumping Holdings
Performance |
| Timeline |
| Wang Lee Group, |
| Concrete Pumping Holdings |
Wang Lee and Concrete Pumping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wang Lee and Concrete Pumping
The main advantage of trading using opposite Wang Lee and Concrete Pumping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wang Lee position performs unexpectedly, Concrete Pumping 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 Concrete Pumping will offset losses from the drop in Concrete Pumping's long position.The idea behind Wang Lee Group, and Concrete Pumping Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Concrete Pumping vs. ACS Actividades de | Concrete Pumping vs. ACS Actividades De | Concrete Pumping vs. Badger Infrastructure Solutions | Concrete Pumping vs. MYR Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |