Correlation Between Singha Estate and WHA UTILITIES

Can any of the company-specific risk be diversified away by investing in both Singha Estate and WHA UTILITIES 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 Singha Estate and WHA UTILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Singha Estate Public and WHA UTILITIES AND, you can compare the effects of market volatilities on Singha Estate and WHA UTILITIES 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 Singha Estate with a short position of WHA UTILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singha Estate and WHA UTILITIES.

Diversification Opportunities for Singha Estate and WHA UTILITIES

-0.23

Correlation Coefficient

Singha Estate  WHA UTILITIES

Very good diversification

The 3 months correlation between Singha and WHA is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Singha Estate Public and WHA UTILITIES AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA UTILITIES AND and Singha Estate 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 Singha Estate Public are associated (or correlated) with WHA UTILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA UTILITIES AND has no effect on the direction of Singha Estate i.e., Singha Estate and WHA UTILITIES go up and down completely randomly.

Pair Corralation between Singha Estate and WHA UTILITIES

Assuming the 90 days trading horizon Singha Estate Public is expected to generate 25.83 times more return on investment than WHA UTILITIES. However, Singha Estate is 25.83 times more volatile than WHA UTILITIES AND. It trades about 0.11 of its potential returns per unit of risk. WHA UTILITIES AND is currently generating about 0.13 per unit of risk. If you would invest  131.00  in Singha Estate Public on September 26, 2024 and sell it today you would lose (40.00) from holding Singha Estate Public or give up 30.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Singha Estate Public  vs.  WHA UTILITIES AND

Singha Estate Public

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Singha Estate Public are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Singha Estate disclosed solid returns over the last few months and may actually be approaching a breakup point.

WHA UTILITIES AND

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in WHA UTILITIES AND are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, WHA UTILITIES reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Singha Estate and WHA UTILITIES

The main advantage of trading using opposite Singha Estate and WHA UTILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singha Estate position performs unexpectedly, WHA UTILITIES 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 WHA UTILITIES will offset losses from the drop in WHA UTILITIES's long position.

The idea behind Singha Estate Public and WHA UTILITIES AND 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.

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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.