Correlation Between Workpoint Entertainment and Asia Metal
Can any of the company-specific risk be diversified away by investing in both Workpoint Entertainment and Asia Metal 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 Workpoint Entertainment and Asia Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workpoint Entertainment Public and Asia Metal Public, you can compare the effects of market volatilities on Workpoint Entertainment and Asia Metal 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 Workpoint Entertainment with a short position of Asia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workpoint Entertainment and Asia Metal.
Diversification Opportunities for Workpoint Entertainment and Asia Metal
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Workpoint and Asia is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Workpoint Entertainment Public and Asia Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Metal Public and Workpoint Entertainment 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 Workpoint Entertainment Public are associated (or correlated) with Asia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Metal Public has no effect on the direction of Workpoint Entertainment i.e., Workpoint Entertainment and Asia Metal go up and down completely randomly.
Pair Corralation between Workpoint Entertainment and Asia Metal
Assuming the 90 days trading horizon Workpoint Entertainment Public is expected to generate 0.28 times more return on investment than Asia Metal. However, Workpoint Entertainment Public is 3.52 times less risky than Asia Metal. It trades about -0.42 of its potential returns per unit of risk. Asia Metal Public is currently generating about -0.29 per unit of risk. If you would invest 620.00 in Workpoint Entertainment Public on October 20, 2024 and sell it today you would lose (80.00) from holding Workpoint Entertainment Public or give up 12.9% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Workpoint Entertainment Public vs. Asia Metal Public
Performance |
Timeline |
Workpoint Entertainment |
Asia Metal Public |
Workpoint Entertainment and Asia Metal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Workpoint Entertainment and Asia Metal
The main advantage of trading using opposite Workpoint Entertainment and Asia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workpoint Entertainment position performs unexpectedly, Asia Metal 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 Asia Metal will offset losses from the drop in Asia Metal's long position.Workpoint Entertainment vs. Siamgas and Petrochemicals | Workpoint Entertainment vs. Namyong Terminal PCL | Workpoint Entertainment vs. MCOT Public | Workpoint Entertainment vs. The Erawan Group |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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