Correlation Between WHA Industrial and Supalai Public

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

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

Diversification Opportunities for WHA Industrial and Supalai Public

-0.16

Correlation Coefficient

WHA Industrial  Supalai Public

Good diversification

The 3 months correlation between WHA and Supalai is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding WHA Industrial Leasehold and Supalai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supalai Public and WHA Industrial 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 Industrial Leasehold are associated (or correlated) with Supalai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supalai Public has no effect on the direction of WHA Industrial i.e., WHA Industrial and Supalai Public go up and down completely randomly.

Pair Corralation between WHA Industrial and Supalai Public

Assuming the 90 days trading horizon WHA Industrial is expected to generate 111.73 times less return on investment than Supalai Public. But when comparing it to its historical volatility, WHA Industrial Leasehold is 125.5 times less risky than Supalai Public. It trades about 0.13 of its potential returns per unit of risk. Supalai Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,119  in Supalai Public on September 29, 2024 and sell it today you would lose (289.00) from holding Supalai Public or give up 13.64% of portfolio value over 90 days.

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

WHA Industrial Leasehold  vs.  Supalai Public

WHA Industrial Leasehold

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in WHA Industrial Leasehold are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, WHA Industrial may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Supalai Public

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Supalai Public are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting essential indicators, Supalai Public reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WHA Industrial and Supalai Public

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

The idea behind WHA Industrial Leasehold and Supalai 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.