Correlation Between WHA Public and Ticon Freehold

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

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

Diversification Opportunities for WHA Public and Ticon Freehold

-0.69

Correlation Coefficient

WHA Public  Ticon Freehold

Excellent diversification

The 3 months correlation between WHA and Ticon is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding WHA Public and Ticon Freehold and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ticon Freehold and WHA Public 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 WHA Public are associated (or correlated) with Ticon Freehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ticon Freehold has no effect on the direction of WHA Public i.e., WHA Public and Ticon Freehold go up and down completely randomly.

Pair Corralation between WHA Public and Ticon Freehold

Assuming the 90 days trading horizon WHA Public is expected to under-perform the Ticon Freehold. In addition to that, WHA Public is 3.9 times more volatile than Ticon Freehold and. It trades about -0.17 of its total potential returns per unit of risk. Ticon Freehold and is currently generating about 0.05 per unit of volatility. If you would invest  991.00  in Ticon Freehold and on December 27, 2024 and sell it today you would earn a total of  29.00  from holding Ticon Freehold and or generate 2.93% return on investment over 90 days.

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

WHA Public  vs.  Ticon Freehold and

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.

Ticon Freehold

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ticon Freehold and are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Ticon Freehold is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with WHA Public and Ticon Freehold

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

The idea behind WHA Public and Ticon Freehold and 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.