Correlation Between Signet International and George Weston
Can any of the company-specific risk be diversified away by investing in both Signet International and George Weston 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 Signet International and George Weston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signet International Holdings and George Weston Limited, you can compare the effects of market volatilities on Signet International and George Weston 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 Signet International with a short position of George Weston. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signet International and George Weston.
Diversification Opportunities for Signet International and George Weston
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Signet and George is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Signet International Holdings and George Weston Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Weston Limited and Signet International 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 Signet International Holdings are associated (or correlated) with George Weston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Weston Limited has no effect on the direction of Signet International i.e., Signet International and George Weston go up and down completely randomly.
Pair Corralation between Signet International and George Weston
Given the investment horizon of 90 days Signet International Holdings is expected to generate 28.56 times more return on investment than George Weston. However, Signet International is 28.56 times more volatile than George Weston Limited. It trades about 0.09 of its potential returns per unit of risk. George Weston Limited is currently generating about 0.04 per unit of risk. If you would invest 3.45 in Signet International Holdings on August 30, 2024 and sell it today you would earn a total of 23.55 from holding Signet International Holdings or generate 682.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 80.2% |
| Values | Daily Returns |
Signet International Holdings vs. George Weston Limited
Performance |
| Timeline |
| Signet International |
| George Weston Limited |
Signet International and George Weston Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signet International and George Weston
The main advantage of trading using opposite Signet International and George Weston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signet International position performs unexpectedly, George Weston 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 George Weston will offset losses from the drop in George Weston's long position.| Signet International vs. Embotelladora Andina SA | Signet International vs. PT Astra International | Signet International vs. Embotelladora Andina SA | Signet International vs. Alkame Holdings |
| George Weston vs. Embotelladora Andina SA | George Weston vs. Signet International Holdings | George Weston vs. National Beverage Corp | George Weston vs. PT Astra International |
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.
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