Correlation Between Cshg Logistica and WHG REAL

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

By analyzing existing cross correlation between Cshg Logistica and WHG REAL ESTATE, you can compare the effects of market volatilities on Cshg Logistica and WHG REAL 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 Cshg Logistica with a short position of WHG REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cshg Logistica and WHG REAL.

Diversification Opportunities for Cshg Logistica and WHG REAL

0.44

Correlation Coefficient

Cshg Logistica  WHG REAL

Very weak diversification

The 3 months correlation between Cshg and WHG is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cshg Logistica and WHG REAL ESTATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHG REAL ESTATE and Cshg Logistica 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 Cshg Logistica are associated (or correlated) with WHG REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHG REAL ESTATE has no effect on the direction of Cshg Logistica i.e., Cshg Logistica and WHG REAL go up and down completely randomly.

Pair Corralation between Cshg Logistica and WHG REAL

Assuming the 90 days trading horizon Cshg Logistica is expected to under-perform the WHG REAL. But the fund apears to be less risky and, when comparing its historical volatility, Cshg Logistica is 1.22 times less risky than WHG REAL. The fund trades about -0.02 of its potential returns per unit of risk. The WHG REAL ESTATE is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  865.00  in WHG REAL ESTATE on October 26, 2024 and sell it today you would lose (17.00) from holding WHG REAL ESTATE or give up 1.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cshg Logistica   vs.  WHG REAL ESTATE

Cshg Logistica

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cshg Logistica has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong essential indicators, Cshg Logistica is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

WHG REAL ESTATE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WHG REAL ESTATE has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong technical and fundamental indicators, WHG REAL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cshg Logistica and WHG REAL

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

The idea behind Cshg Logistica and WHG REAL ESTATE 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.