Correlation Between AHOLD DELHAIADR16 and Woolworths Group
Can any of the company-specific risk be diversified away by investing in both AHOLD DELHAIADR16 and Woolworths Group 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 AHOLD DELHAIADR16 and Woolworths Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AHOLD DELHAIADR16 EO 25 and Woolworths Group Limited, you can compare the effects of market volatilities on AHOLD DELHAIADR16 and Woolworths Group 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 AHOLD DELHAIADR16 with a short position of Woolworths Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AHOLD DELHAIADR16 and Woolworths Group.
Diversification Opportunities for AHOLD DELHAIADR16 and Woolworths Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AHOLD and Woolworths is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AHOLD DELHAIADR16 EO 25 and Woolworths Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Woolworths Group and AHOLD DELHAIADR16 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 AHOLD DELHAIADR16 EO 25 are associated (or correlated) with Woolworths Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Woolworths Group has no effect on the direction of AHOLD DELHAIADR16 i.e., AHOLD DELHAIADR16 and Woolworths Group go up and down completely randomly.
Pair Corralation between AHOLD DELHAIADR16 and Woolworths Group
If you would invest 1,800 in Woolworths Group Limited on November 2, 2024 and sell it today you would earn a total of 20.00 from holding Woolworths Group Limited or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.67% |
| Values | Daily Returns |
AHOLD DELHAIADR16 EO 25 vs. Woolworths Group Limited
Performance |
| Timeline |
| AHOLD DELHAIADR16 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Woolworths Group |
AHOLD DELHAIADR16 and Woolworths Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AHOLD DELHAIADR16 and Woolworths Group
The main advantage of trading using opposite AHOLD DELHAIADR16 and Woolworths Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AHOLD DELHAIADR16 position performs unexpectedly, Woolworths Group 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 Woolworths Group will offset losses from the drop in Woolworths Group's long position.| AHOLD DELHAIADR16 vs. SLR Investment Corp | AHOLD DELHAIADR16 vs. New Residential Investment | AHOLD DELHAIADR16 vs. Virtus Investment Partners | AHOLD DELHAIADR16 vs. Guangdong Investment Limited |
| Woolworths Group vs. UNIQA INSURANCE GR | Woolworths Group vs. Direct Line Insurance | Woolworths Group vs. Insurance Australia Group | Woolworths Group vs. Canadian Utilities Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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