Correlation Between TPI Polene and WHA Public
Can any of the company-specific risk be diversified away by investing in both TPI Polene and WHA Public 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 TPI Polene and WHA Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPI Polene Public and WHA Public, you can compare the effects of market volatilities on TPI Polene and WHA Public 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 TPI Polene with a short position of WHA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPI Polene and WHA Public.
Diversification Opportunities for TPI Polene and WHA Public
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TPI and WHA is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding TPI Polene Public and WHA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Public and TPI Polene 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 TPI Polene Public are associated (or correlated) with WHA Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Public has no effect on the direction of TPI Polene i.e., TPI Polene and WHA Public go up and down completely randomly.
Pair Corralation between TPI Polene and WHA Public
Assuming the 90 days trading horizon TPI Polene Public is expected to under-perform the WHA Public. But the stock apears to be less risky and, when comparing its historical volatility, TPI Polene Public is 1.76 times less risky than WHA Public. The stock trades about -0.21 of its potential returns per unit of risk. The WHA Public is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 538.00 in WHA Public on September 25, 2024 and sell it today you would earn a total of 7.00 from holding WHA Public or generate 1.3% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TPI Polene Public vs. WHA Public
Performance |
Timeline |
TPI Polene Public |
WHA Public |
TPI Polene and WHA Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TPI Polene and WHA Public
The main advantage of trading using opposite TPI Polene and WHA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPI Polene position performs unexpectedly, WHA Public 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 Public will offset losses from the drop in WHA Public's long position.TPI Polene vs. Dynasty Ceramic Public | TPI Polene vs. Chonburi Concrete Product | TPI Polene vs. General Engineering Public | TPI Polene vs. Eastern Star Real |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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