Correlation Between WHA Public and Vanachai Group
Can any of the company-specific risk be diversified away by investing in both WHA Public and Vanachai Group 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 Vanachai Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Public and Vanachai Group Public, you can compare the effects of market volatilities on WHA Public and Vanachai Group 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 Vanachai Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Public and Vanachai Group.
Diversification Opportunities for WHA Public and Vanachai Group
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WHA and Vanachai is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding WHA Public and Vanachai Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanachai Group 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 Vanachai Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanachai Group Public has no effect on the direction of WHA Public i.e., WHA Public and Vanachai Group go up and down completely randomly.
Pair Corralation between WHA Public and Vanachai Group
Assuming the 90 days trading horizon WHA Public is expected to generate 23.64 times less return on investment than Vanachai Group. But when comparing it to its historical volatility, WHA Public is 26.39 times less risky than Vanachai Group. It trades about 0.04 of its potential returns per unit of risk. Vanachai Group Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 563.00 in Vanachai Group Public on September 24, 2024 and sell it today you would lose (249.00) from holding Vanachai Group Public or give up 44.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
WHA Public vs. Vanachai Group Public
Performance |
Timeline |
WHA Public |
Vanachai Group Public |
WHA Public and Vanachai Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WHA Public and Vanachai Group
The main advantage of trading using opposite WHA Public and Vanachai Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Public position performs unexpectedly, Vanachai Group 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 Vanachai Group will offset losses from the drop in Vanachai Group's long position.WHA Public vs. Bangkok Bank Public | WHA Public vs. The Siam Cement | WHA Public vs. PTT Public | WHA Public vs. SCB X Public |
Vanachai Group vs. Land and Houses | Vanachai Group vs. CH Karnchang Public | Vanachai Group vs. Krung Thai Bank | Vanachai Group vs. Bangkok Bank 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
CEOs Directory Screen CEOs from public companies around the world | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |