Correlation Between Group 6 and Whitefield Industrials

Can any of the company-specific risk be diversified away by investing in both Group 6 and Whitefield Industrials 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 Group 6 and Whitefield Industrials into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Group 6 Metals and Whitefield Industrials, you can compare the effects of market volatilities on Group 6 and Whitefield Industrials 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 Group 6 with a short position of Whitefield Industrials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group 6 and Whitefield Industrials.

Diversification Opportunities for Group 6 and Whitefield Industrials

0.0

Correlation Coefficient

Group 6  Whitefield Industrials

Pay attention - limited upside

The 3 months correlation between Group and Whitefield is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Group 6 Metals and Whitefield Industrials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitefield Industrials and Group 6 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 Group 6 Metals are associated (or correlated) with Whitefield Industrials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitefield Industrials has no effect on the direction of Group 6 i.e., Group 6 and Whitefield Industrials go up and down completely randomly.

Pair Corralation between Group 6 and Whitefield Industrials

If you would invest  536.00  in Whitefield Industrials on April 25, 2025 and sell it today you would earn a total of  23.00  from holding Whitefield Industrials or generate 4.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Group 6 Metals  vs.  Whitefield Industrials

Group 6 Metals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Group 6 Metals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, Group 6 is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Whitefield Industrials

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Whitefield Industrials are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Whitefield Industrials is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Group 6 and Whitefield Industrials

The main advantage of trading using opposite Group 6 and Whitefield Industrials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group 6 position performs unexpectedly, Whitefield Industrials 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 Whitefield Industrials will offset losses from the drop in Whitefield Industrials' long position.

The idea behind Group 6 Metals and Whitefield Industrials 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 Stocks Directory module to find actively traded stocks across global markets.