Correlation Between WESANA HEALTH and FRASERS PROPERTY

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

By analyzing existing cross correlation between WESANA HEALTH HOLD and FRASERS PROPERTY, you can compare the effects of market volatilities on WESANA HEALTH and FRASERS PROPERTY 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 WESANA HEALTH with a short position of FRASERS PROPERTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESANA HEALTH and FRASERS PROPERTY.

Diversification Opportunities for WESANA HEALTH and FRASERS PROPERTY

0.0

Correlation Coefficient

WESANA HEALTH  FRASERS PROPERTY

Pay attention - limited upside

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

Pair Corralation between WESANA HEALTH and FRASERS PROPERTY

If you would invest  56.00  in FRASERS PROPERTY on October 26, 2024 and sell it today you would earn a total of  5.00  from holding FRASERS PROPERTY or generate 8.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

WESANA HEALTH HOLD  vs.  FRASERS PROPERTY

WESANA HEALTH HOLD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WESANA HEALTH HOLD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, WESANA HEALTH is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

FRASERS PROPERTY

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in FRASERS PROPERTY are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FRASERS PROPERTY may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with WESANA HEALTH and FRASERS PROPERTY

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

The idea behind WESANA HEALTH HOLD and FRASERS PROPERTY 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.