Correlation Between WAGNERS HOLDING and Nomad Foods
Can any of the company-specific risk be diversified away by investing in both WAGNERS HOLDING and Nomad Foods 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 WAGNERS HOLDING and Nomad Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WAGNERS HOLDING LTD and Nomad Foods, you can compare the effects of market volatilities on WAGNERS HOLDING and Nomad Foods 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 WAGNERS HOLDING with a short position of Nomad Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of WAGNERS HOLDING and Nomad Foods.
Diversification Opportunities for WAGNERS HOLDING and Nomad Foods
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WAGNERS and Nomad is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding WAGNERS HOLDING LTD and Nomad Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nomad Foods and WAGNERS HOLDING 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 WAGNERS HOLDING LTD are associated (or correlated) with Nomad Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nomad Foods has no effect on the direction of WAGNERS HOLDING i.e., WAGNERS HOLDING and Nomad Foods go up and down completely randomly.
Pair Corralation between WAGNERS HOLDING and Nomad Foods
Assuming the 90 days horizon WAGNERS HOLDING LTD is expected to generate 1.48 times more return on investment than Nomad Foods. However, WAGNERS HOLDING is 1.48 times more volatile than Nomad Foods. It trades about 0.11 of its potential returns per unit of risk. Nomad Foods is currently generating about 0.06 per unit of risk. If you would invest 79.00 in WAGNERS HOLDING LTD on November 6, 2024 and sell it today you would earn a total of 15.00 from holding WAGNERS HOLDING LTD or generate 18.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
WAGNERS HOLDING LTD vs. Nomad Foods
Performance |
| Timeline |
| WAGNERS HOLDING LTD |
| Nomad Foods |
WAGNERS HOLDING and Nomad Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WAGNERS HOLDING and Nomad Foods
The main advantage of trading using opposite WAGNERS HOLDING and Nomad Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WAGNERS HOLDING position performs unexpectedly, Nomad Foods 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 Nomad Foods will offset losses from the drop in Nomad Foods' long position.| WAGNERS HOLDING vs. MHP Hotel AG | WAGNERS HOLDING vs. United Rentals | WAGNERS HOLDING vs. FIRST SHIP LEASE | WAGNERS HOLDING vs. Sixt Leasing SE |
| Nomad Foods vs. NAGOYA RAILROAD | Nomad Foods vs. GOLD ROAD RES | Nomad Foods vs. Transport International Holdings | Nomad Foods vs. Texas Roadhouse |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |