Correlation Between EAT WELL and Woodside Energy
Can any of the company-specific risk be diversified away by investing in both EAT WELL and Woodside Energy 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 EAT WELL and Woodside Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EAT WELL INVESTMENT and Woodside Energy Group, you can compare the effects of market volatilities on EAT WELL and Woodside Energy 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 EAT WELL with a short position of Woodside Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of EAT WELL and Woodside Energy.
Diversification Opportunities for EAT WELL and Woodside Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EAT and Woodside is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EAT WELL INVESTMENT and Woodside Energy Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woodside Energy Group and EAT WELL 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 EAT WELL INVESTMENT are associated (or correlated) with Woodside Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woodside Energy Group has no effect on the direction of EAT WELL i.e., EAT WELL and Woodside Energy go up and down completely randomly.
Pair Corralation between EAT WELL and Woodside Energy
Assuming the 90 days trading horizon EAT WELL INVESTMENT is expected to generate 1.78 times more return on investment than Woodside Energy. However, EAT WELL is 1.78 times more volatile than Woodside Energy Group. It trades about -0.01 of its potential returns per unit of risk. Woodside Energy Group is currently generating about -0.02 per unit of risk. If you would invest 15.00 in EAT WELL INVESTMENT on September 3, 2024 and sell it today you would lose (4.00) from holding EAT WELL INVESTMENT or give up 26.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EAT WELL INVESTMENT vs. Woodside Energy Group
Performance |
| Timeline |
| EAT WELL INVESTMENT |
| Woodside Energy Group |
EAT WELL and Woodside Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EAT WELL and Woodside Energy
The main advantage of trading using opposite EAT WELL and Woodside Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EAT WELL position performs unexpectedly, Woodside Energy 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 Woodside Energy will offset losses from the drop in Woodside Energy's long position.| EAT WELL vs. Blackstone Group | EAT WELL vs. BlackRock | EAT WELL vs. The Bank of | EAT WELL vs. Ameriprise Financial |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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