Correlation Between Aryzta AG and WH Group
Can any of the company-specific risk be diversified away by investing in both Aryzta AG and WH 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 Aryzta AG and WH Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aryzta AG PK and WH Group Limited, you can compare the effects of market volatilities on Aryzta AG and WH 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 Aryzta AG with a short position of WH Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aryzta AG and WH Group.
Diversification Opportunities for Aryzta AG and WH Group
Very good diversification
The 3 months correlation between Aryzta and WHGRF is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Aryzta AG PK and WH Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WH Group Limited and Aryzta AG 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 Aryzta AG PK are associated (or correlated) with WH Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WH Group Limited has no effect on the direction of Aryzta AG i.e., Aryzta AG and WH Group go up and down completely randomly.
Pair Corralation between Aryzta AG and WH Group
Assuming the 90 days horizon Aryzta AG PK is expected to generate 2.04 times more return on investment than WH Group. However, Aryzta AG is 2.04 times more volatile than WH Group Limited. It trades about 0.18 of its potential returns per unit of risk. WH Group Limited is currently generating about -0.11 per unit of risk. If you would invest 86.00 in Aryzta AG PK on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Aryzta AG PK or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Aryzta AG PK vs. WH Group Limited
Performance |
| Timeline |
| Aryzta AG PK |
| WH Group Limited |
Aryzta AG and WH Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aryzta AG and WH Group
The main advantage of trading using opposite Aryzta AG and WH Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aryzta AG position performs unexpectedly, WH 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 WH Group will offset losses from the drop in WH Group's long position.| Aryzta AG vs. Artisan Consumer Goods | Aryzta AG vs. Altavoz Entertainment | Aryzta AG vs. Avi Ltd ADR | Aryzta AG vs. The a2 Milk |
| WH Group vs. Premier Foods Plc | WH Group vs. Torque Lifestyle Brands | WH Group vs. Naturally Splendid Enterprises | WH Group vs. Aryzta AG PK |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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