Correlation Between Aura Investments and G Willi
Can any of the company-specific risk be diversified away by investing in both Aura Investments 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 Aura Investments and G Willi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aura Investments and G Willi Food International, you can compare the effects of market volatilities on Aura Investments 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 Aura Investments with a short position of G Willi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aura Investments and G Willi.
Diversification Opportunities for Aura Investments and G Willi
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aura and WILC is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Aura Investments 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 Aura Investments 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 Aura Investments 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 Aura Investments i.e., Aura Investments and G Willi go up and down completely randomly.
Pair Corralation between Aura Investments and G Willi
Assuming the 90 days trading horizon Aura Investments is expected to generate 34.82 times less return on investment than G Willi. But when comparing it to its historical volatility, Aura Investments is 1.79 times less risky than G Willi. It trades about 0.02 of its potential returns per unit of risk. G Willi Food International is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 440,400 in G Willi Food International on September 2, 2024 and sell it today you would earn a total of 90,900 from holding G Willi Food International or generate 20.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aura Investments vs. G Willi Food International
Performance |
| Timeline |
| Aura Investments |
| G Willi Food |
Aura Investments and G Willi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aura Investments and G Willi
The main advantage of trading using opposite Aura Investments and G Willi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aura Investments 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.| Aura Investments vs. Fattal 1998 Holdings | Aura Investments vs. Azrieli Group | Aura Investments vs. Clal Insurance Enterprises |
| G Willi vs. Nice | G Willi vs. The Gold Bond | G Willi vs. Bank Leumi Le Israel | G Willi vs. ICL Israel Chemicals |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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