Correlation Between BioLine RX and G Willi
Can any of the company-specific risk be diversified away by investing in both BioLine RX 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 BioLine RX and G Willi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BioLine RX and G Willi Food International, you can compare the effects of market volatilities on BioLine RX 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 BioLine RX with a short position of G Willi. Check out your portfolio center. Please also check ongoing floating volatility patterns of BioLine RX and G Willi.
Diversification Opportunities for BioLine RX and G Willi
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BioLine and WILC is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding BioLine RX 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 BioLine RX 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 BioLine RX 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 BioLine RX i.e., BioLine RX and G Willi go up and down completely randomly.
Pair Corralation between BioLine RX and G Willi
Assuming the 90 days trading horizon BioLine RX is expected to under-perform the G Willi. In addition to that, BioLine RX is 5.47 times more volatile than G Willi Food International. It trades about -0.37 of its total potential returns per unit of risk. G Willi Food International is currently generating about -0.11 per unit of volatility. If you would invest 608,700 in G Willi Food International on October 23, 2024 and sell it today you would lose (16,300) from holding G Willi Food International or give up 2.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BioLine RX vs. G Willi Food International
Performance |
| Timeline |
| BioLine RX |
| G Willi Food |
BioLine RX and G Willi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BioLine RX and G Willi
The main advantage of trading using opposite BioLine RX and G Willi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BioLine RX 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.| BioLine RX vs. Evogene | BioLine RX vs. Enlivex Therapeutics | BioLine RX vs. Kamada | BioLine RX vs. Compugen |
| G Willi vs. XTL Biopharmaceuticals Ltd | G Willi vs. Intercure | G Willi vs. BioLine RX | G Willi vs. Foresight Autonomous Holdings |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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