Correlation Between WHA Public and Singha Estate

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

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

Diversification Opportunities for WHA Public and Singha Estate

0.0

Correlation Coefficient

WHA Public  Singha Estate

Pay attention - limited upside

The 3 months correlation between WHA and Singha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WHA Public and Singha Estate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singha Estate Public and WHA Public 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 WHA Public are associated (or correlated) with Singha Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singha Estate Public has no effect on the direction of WHA Public i.e., WHA Public and Singha Estate go up and down completely randomly.

Pair Corralation between WHA Public and Singha Estate

Assuming the 90 days trading horizon WHA Public is expected to generate 64.01 times less return on investment than Singha Estate. But when comparing it to its historical volatility, WHA Public is 47.6 times less risky than Singha Estate. It trades about 0.06 of its potential returns per unit of risk. Singha Estate Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  76.00  in Singha Estate Public on September 26, 2024 and sell it today you would earn a total of  15.00  from holding Singha Estate Public or generate 19.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

WHA Public  vs.  Singha Estate Public

WHA Public

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WHA Public are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, WHA Public is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Singha Estate Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Singha Estate Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with WHA Public and Singha Estate

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

The idea behind WHA Public and Singha Estate Public 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.