Correlation Between Sendas Distribuidora and G Willi
Can any of the company-specific risk be diversified away by investing in both Sendas Distribuidora and G Willi 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 Sendas Distribuidora and G Willi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sendas Distribuidora SA and G Willi Food International, you can compare the effects of market volatilities on Sendas Distribuidora and G Willi 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 Sendas Distribuidora with a short position of G Willi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sendas Distribuidora and G Willi.
Diversification Opportunities for Sendas Distribuidora and G Willi
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sendas and WILC is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sendas Distribuidora SA and G Willi Food International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Willi Food and Sendas Distribuidora 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 Sendas Distribuidora SA are associated (or correlated) with G Willi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Willi Food has no effect on the direction of Sendas Distribuidora i.e., Sendas Distribuidora and G Willi go up and down completely randomly.
Pair Corralation between Sendas Distribuidora and G Willi
Given the investment horizon of 90 days Sendas Distribuidora SA is expected to under-perform the G Willi. In addition to that, Sendas Distribuidora is 1.38 times more volatile than G Willi Food International. It trades about -0.05 of its total potential returns per unit of risk. G Willi Food International is currently generating about 0.04 per unit of volatility. If you would invest 1,188 in G Willi Food International on November 1, 2024 and sell it today you would earn a total of 436.00 from holding G Willi Food International or generate 36.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.89% |
| Values | Daily Returns |
Sendas Distribuidora SA vs. G Willi Food International
Performance |
| Timeline |
| Sendas Distribuidora |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| G Willi Food |
Sendas Distribuidora and G Willi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sendas Distribuidora and G Willi
The main advantage of trading using opposite Sendas Distribuidora and G Willi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sendas Distribuidora position performs unexpectedly, G Willi 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 G Willi will offset losses from the drop in G Willi's long position.| Sendas Distribuidora vs. Village Super Market | Sendas Distribuidora vs. Weis Markets | Sendas Distribuidora vs. Ingles Markets Incorporated | Sendas Distribuidora vs. Grocery Outlet Holding |
| G Willi vs. Hf Foods Group | G Willi vs. Innovative Food Hldg | G Willi vs. Calavo Growers | G Willi vs. The Chefs Warehouse |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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