Correlation Between Wiwynn Corp and Wah Hong
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and Wah Hong 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 Wiwynn Corp and Wah Hong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiwynn Corp and Wah Hong Industrial, you can compare the effects of market volatilities on Wiwynn Corp and Wah Hong 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 Wiwynn Corp with a short position of Wah Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and Wah Hong.
Diversification Opportunities for Wiwynn Corp and Wah Hong
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wiwynn and Wah is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Wah Hong Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wah Hong Industrial and Wiwynn Corp 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 Wiwynn Corp are associated (or correlated) with Wah Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wah Hong Industrial has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Wah Hong go up and down completely randomly.
Pair Corralation between Wiwynn Corp and Wah Hong
Assuming the 90 days trading horizon Wiwynn Corp is expected to generate 2.27 times less return on investment than Wah Hong. In addition to that, Wiwynn Corp is 1.09 times more volatile than Wah Hong Industrial. It trades about 0.03 of its total potential returns per unit of risk. Wah Hong Industrial is currently generating about 0.06 per unit of volatility. If you would invest 3,530 in Wah Hong Industrial on September 25, 2024 and sell it today you would earn a total of 770.00 from holding Wah Hong Industrial or generate 21.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.21% |
Values | Daily Returns |
Wiwynn Corp vs. Wah Hong Industrial
Performance |
Timeline |
Wiwynn Corp |
Wah Hong Industrial |
Wiwynn Corp and Wah Hong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wiwynn Corp and Wah Hong
The main advantage of trading using opposite Wiwynn Corp and Wah Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, Wah Hong 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 Wah Hong will offset losses from the drop in Wah Hong's long position.Wiwynn Corp vs. Quanta Computer | Wiwynn Corp vs. Getac Technology Corp | Wiwynn Corp vs. InnoDisk | Wiwynn Corp vs. VIA Labs |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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