Correlation Between WHA Premium and Sappe Public
Can any of the company-specific risk be diversified away by investing in both WHA Premium and Sappe 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 Premium and Sappe Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Premium Growth and Sappe Public, you can compare the effects of market volatilities on WHA Premium and Sappe 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 Premium with a short position of Sappe Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Premium and Sappe Public.
Diversification Opportunities for WHA Premium and Sappe Public
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WHA and Sappe is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding WHA Premium Growth and Sappe Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sappe Public and WHA Premium 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 Premium Growth are associated (or correlated) with Sappe Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sappe Public has no effect on the direction of WHA Premium i.e., WHA Premium and Sappe Public go up and down completely randomly.
Pair Corralation between WHA Premium and Sappe Public
Assuming the 90 days trading horizon WHA Premium Growth is expected to under-perform the Sappe Public. But the stock apears to be less risky and, when comparing its historical volatility, WHA Premium Growth is 3.21 times less risky than Sappe Public. The stock trades about -0.4 of its potential returns per unit of risk. The Sappe Public is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 8,595 in Sappe Public on February 8, 2024 and sell it today you would earn a total of 955.00 from holding Sappe Public or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
WHA Premium Growth vs. Sappe Public
Performance |
| Timeline |
| WHA Premium Growth |
| Sappe Public |
WHA Premium and Sappe Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Premium and Sappe Public
The main advantage of trading using opposite WHA Premium and Sappe Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Premium position performs unexpectedly, Sappe 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 Sappe Public will offset losses from the drop in Sappe Public's long position.| WHA Premium vs. Land and Houses | WHA Premium vs. LH Hotel Leasehold | WHA Premium vs. LH Shopping Centers |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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