Correlation Between Lohakit Metal and WHA Public

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

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

Diversification Opportunities for Lohakit Metal and WHA Public

0.93

Correlation Coefficient

Lohakit Metal  WHA Public

Almost no diversification

The 3 months correlation between Lohakit and WHA is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and WHA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Public and Lohakit Metal 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 Lohakit Metal Public are associated (or correlated) with WHA Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Public has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and WHA Public go up and down completely randomly.

Pair Corralation between Lohakit Metal and WHA Public

Assuming the 90 days trading horizon Lohakit Metal Public is expected to generate 0.14 times more return on investment than WHA Public. However, Lohakit Metal Public is 7.1 times less risky than WHA Public. It trades about -0.36 of its potential returns per unit of risk. WHA Public is currently generating about -0.18 per unit of risk. If you would invest  364.00  in Lohakit Metal Public on December 29, 2024 and sell it today you would lose (40.00) from holding Lohakit Metal Public or give up 10.99% of portfolio value over 90 days.

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

Lohakit Metal Public  vs.  WHA Public

Lohakit Metal Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lohakit Metal Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

WHA Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days WHA Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Lohakit Metal and WHA Public

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

The idea behind Lohakit Metal Public and WHA Public 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.