Correlation Between Wins Finance and Western Union

Can any of the company-specific risk be diversified away by investing in both Wins Finance and Western Union 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 Wins Finance and Western Union into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wins Finance Holdings and Western Union Co, you can compare the effects of market volatilities on Wins Finance and Western Union 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 Wins Finance with a short position of Western Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wins Finance and Western Union.

Diversification Opportunities for Wins Finance and Western Union

0.0

Correlation Coefficient

Wins Finance  Western Union

Pay attention - limited upside

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

Pair Corralation between Wins Finance and Western Union

If you would invest  1,277  in Western Union Co on January 20, 2024 and sell it today you would earn a total of  16.00  from holding Western Union Co or generate 1.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Wins Finance Holdings  vs.  Western Union Co

Wins Finance Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wins Finance Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Wins Finance is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Western Union

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Western Union Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Western Union may actually be approaching a critical reversion point that can send shares even higher in May 2024.

Pair Trading with Wins Finance and Western Union

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

The idea behind Wins Finance Holdings and Western Union Co 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.