Correlation Between Workpoint Entertainment and Wave Entertainment
Can any of the company-specific risk be diversified away by investing in both Workpoint Entertainment and Wave Entertainment 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 Wave Entertainment 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 Wave Entertainment Public, you can compare the effects of market volatilities on Workpoint Entertainment and Wave Entertainment 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 Wave Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workpoint Entertainment and Wave Entertainment.
Diversification Opportunities for Workpoint Entertainment and Wave Entertainment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Workpoint and Wave is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Workpoint Entertainment Public and Wave Entertainment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wave Entertainment 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 Wave Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wave Entertainment Public has no effect on the direction of Workpoint Entertainment i.e., Workpoint Entertainment and Wave Entertainment go up and down completely randomly.
Pair Corralation between Workpoint Entertainment and Wave Entertainment
Assuming the 90 days trading horizon Workpoint Entertainment Public is expected to generate 0.22 times more return on investment than Wave Entertainment. However, Workpoint Entertainment Public is 4.56 times less risky than Wave Entertainment. It trades about -0.44 of its potential returns per unit of risk. Wave Entertainment Public is currently generating about -0.11 per unit of risk. If you would invest 880.00 in Workpoint Entertainment Public on September 2, 2024 and sell it today you would lose (100.00) from holding Workpoint Entertainment Public or give up 11.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workpoint Entertainment Public vs. Wave Entertainment Public
Performance |
| Timeline |
| Workpoint Entertainment |
| Wave Entertainment Public |
Workpoint Entertainment and Wave Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workpoint Entertainment and Wave Entertainment
The main advantage of trading using opposite Workpoint Entertainment and Wave Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workpoint Entertainment position performs unexpectedly, Wave Entertainment 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 Wave Entertainment will offset losses from the drop in Wave Entertainment's long position.| Workpoint Entertainment vs. Bangkok Chain Hospital | Workpoint Entertainment vs. Grande Asset Hotels | Workpoint Entertainment vs. Better World Green | Workpoint Entertainment vs. Chularat Hospital Public |
| Wave Entertainment vs. Bangkok Chain Hospital | Wave Entertainment vs. Grande Asset Hotels | Wave Entertainment vs. Better World Green | Wave Entertainment vs. Chularat Hospital Public |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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