Correlation Between IShares and Wattanapat Hospital

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

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

Diversification Opportunities for IShares and Wattanapat Hospital

0.0

Correlation Coefficient

IShares  Wattanapat Hospital

Pay attention - limited upside

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

Pair Corralation between IShares and Wattanapat Hospital

If you would invest  333.00  in Wattanapat Hospital Trang on January 25, 2024 and sell it today you would earn a total of  497.00  from holding Wattanapat Hospital Trang or generate 149.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

IShares  vs.  Wattanapat Hospital Trang

IShares

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IShares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, IShares is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Wattanapat Hospital Trang

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wattanapat Hospital Trang are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical indicators, Wattanapat Hospital disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IShares and Wattanapat Hospital

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

The idea behind IShares and Wattanapat Hospital Trang 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.