Correlation Between Whirlpool and Man Wah

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Can any of the company-specific risk be diversified away by investing in both Whirlpool and Man Wah 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 Whirlpool and Man Wah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whirlpool and Man Wah Holdings, you can compare the effects of market volatilities on Whirlpool and Man Wah 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 Whirlpool with a short position of Man Wah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and Man Wah.

Diversification Opportunities for Whirlpool and Man Wah

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Whirlpool and Man Wah

If you would invest (100.00) in Man Wah Holdings on December 30, 2023 and sell it today you would earn a total of  100.00  from holding Man Wah Holdings or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Whirlpool  vs.  Man Wah Holdings

 Performance 
       Timeline  
Whirlpool 

Risk-Adjusted Performance

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Over the last 90 days Whirlpool has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Whirlpool is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.
Man Wah Holdings 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days Man Wah Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Man Wah is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Whirlpool and Man Wah Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Whirlpool and Man Wah

The main advantage of trading using opposite Whirlpool and Man Wah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whirlpool position performs unexpectedly, Man Wah 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 Man Wah will offset losses from the drop in Man Wah's long position.
The idea behind Whirlpool and Man Wah Holdings 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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