Correlation Between Workpoint Entertainment and Wp Energy
Can any of the company-specific risk be diversified away by investing in both Workpoint Entertainment and Wp Energy 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 Wp Energy 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 Wp Energy Public, you can compare the effects of market volatilities on Workpoint Entertainment and Wp Energy 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 Wp Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workpoint Entertainment and Wp Energy.
Diversification Opportunities for Workpoint Entertainment and Wp Energy
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Workpoint and Wp Energy is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Workpoint Entertainment Public and Wp Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wp Energy 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 Wp Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wp Energy Public has no effect on the direction of Workpoint Entertainment i.e., Workpoint Entertainment and Wp Energy go up and down completely randomly.
Pair Corralation between Workpoint Entertainment and Wp Energy
Assuming the 90 days trading horizon Workpoint Entertainment is expected to generate 1.08 times less return on investment than Wp Energy. In addition to that, Workpoint Entertainment is 1.0 times more volatile than Wp Energy Public. It trades about 0.04 of its total potential returns per unit of risk. Wp Energy Public is currently generating about 0.04 per unit of volatility. If you would invest 399.00 in Wp Energy Public on September 2, 2024 and sell it today you would lose (49.00) from holding Wp Energy Public or give up 12.28% 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. Wp Energy Public
Performance |
| Timeline |
| Workpoint Entertainment |
| Wp Energy Public |
Workpoint Entertainment and Wp Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workpoint Entertainment and Wp Energy
The main advantage of trading using opposite Workpoint Entertainment and Wp Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workpoint Entertainment position performs unexpectedly, Wp Energy 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 Wp Energy will offset losses from the drop in Wp Energy'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 |
| Wp Energy vs. Workpoint Entertainment Public | Wp Energy vs. WHA Utilities and | Wp Energy vs. Wave Entertainment Public | Wp Energy vs. VGI 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |