Correlation Between Woa All and Investec Global

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

By analyzing existing cross correlation between Woa All Asset and Investec Global Franchise, you can compare the effects of market volatilities on Woa All and Investec Global 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 Woa All with a short position of Investec Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woa All and Investec Global.

Diversification Opportunities for Woa All and Investec Global

0.08

Correlation Coefficient

Woa All  Investec Global

Significant diversification

The 3 months correlation between Woa and Investec is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Woa All Asset and Investec Global Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Global Franchise and Woa All 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 Woa All Asset are associated (or correlated) with Investec Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Global Franchise has no effect on the direction of Woa All i.e., Woa All and Investec Global go up and down completely randomly.

Pair Corralation between Woa All and Investec Global

Assuming the 90 days horizon Woa All Asset is expected to generate 15.67 times more return on investment than Investec Global. However, Woa All is 15.67 times more volatile than Investec Global Franchise. It trades about 0.05 of its potential returns per unit of risk. Investec Global Franchise is currently generating about 0.17 per unit of risk. If you would invest  625.00  in Woa All Asset on May 2, 2025 and sell it today you would earn a total of  17.00  from holding Woa All Asset or generate 2.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	39.34%
Values	Daily Returns

Woa All Asset  vs.  Investec Global Franchise

Woa All Asset

Risk-Adjusted Performance

Insignificant

Over the last 90 days Woa All Asset has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly weak forward indicators, Woa All showed solid returns over the last few months and may actually be approaching a breakup point.

Investec Global Franchise

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Investec Global Franchise are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Investec Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Woa All and Investec Global

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

The idea behind Woa All Asset and Investec Global Franchise 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.