Correlation Between SOGECLAIR and GWILLI FOOD
Can any of the company-specific risk be diversified away by investing in both SOGECLAIR and GWILLI FOOD 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 SOGECLAIR and GWILLI FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOGECLAIR SA INH and GWILLI FOOD, you can compare the effects of market volatilities on SOGECLAIR and GWILLI FOOD 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 SOGECLAIR with a short position of GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOGECLAIR and GWILLI FOOD.
Diversification Opportunities for SOGECLAIR and GWILLI FOOD
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SOGECLAIR and GWILLI is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding SOGECLAIR SA INH and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD and SOGECLAIR 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 SOGECLAIR SA INH are associated (or correlated) with GWILLI FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWILLI FOOD has no effect on the direction of SOGECLAIR i.e., SOGECLAIR and GWILLI FOOD go up and down completely randomly.
Pair Corralation between SOGECLAIR and GWILLI FOOD
Assuming the 90 days horizon SOGECLAIR SA INH is expected to under-perform the GWILLI FOOD. But the stock apears to be less risky and, when comparing its historical volatility, SOGECLAIR SA INH is 1.27 times less risky than GWILLI FOOD. The stock trades about -0.05 of its potential returns per unit of risk. The GWILLI FOOD is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 895.00 in GWILLI FOOD on October 25, 2024 and sell it today you would earn a total of 645.00 from holding GWILLI FOOD or generate 72.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOGECLAIR SA INH vs. GWILLI FOOD
Performance |
| Timeline |
| SOGECLAIR SA INH |
| GWILLI FOOD |
SOGECLAIR and GWILLI FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOGECLAIR and GWILLI FOOD
The main advantage of trading using opposite SOGECLAIR and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOGECLAIR position performs unexpectedly, GWILLI FOOD 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 GWILLI FOOD will offset losses from the drop in GWILLI FOOD's long position.| SOGECLAIR vs. NTG Nordic Transport | SOGECLAIR vs. SOEDER SPORTFISKE AB | SOGECLAIR vs. SEI INVESTMENTS | SOGECLAIR vs. PennyMac Mortgage Investment |
| GWILLI FOOD vs. Titan Machinery | GWILLI FOOD vs. Australian Agricultural | GWILLI FOOD vs. Penta Ocean Construction Co | GWILLI FOOD vs. Major Drilling Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |