Correlation Between Universal Robina and WH Group

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Can any of the company-specific risk be diversified away by investing in both Universal Robina and WH 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 Universal Robina and WH Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Robina Corp and WH Group, you can compare the effects of market volatilities on Universal Robina and WH 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 Universal Robina with a short position of WH Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Robina and WH Group.

Diversification Opportunities for Universal Robina and WH Group

-0.23
  Correlation Coefficient

Very good diversification

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

Pair Corralation between Universal Robina and WH Group

If you would invest  1,234  in WH Group on December 29, 2023 and sell it today you would earn a total of  121.00  from holding WH Group or generate 9.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Universal Robina Corp  vs.  WH Group Ltd

 Performance 
       Timeline  
Universal Robina Corp 

Risk-Adjusted Performance

6 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Universal Robina Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental drivers, Universal Robina may actually be approaching a critical reversion point that can send shares even higher in April 2024.
WH Group 

Risk-Adjusted Performance

4 of 100

 
Low
 
High
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in WH Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential indicators, WH Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Universal Robina and WH Group Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Universal Robina and WH Group

The main advantage of trading using opposite Universal Robina and WH Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Robina position performs unexpectedly, WH 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 WH Group will offset losses from the drop in WH Group's long position.
The idea behind Universal Robina Corp and WH Group 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.
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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