Correlation Between CNVISION MEDIA and GWILLI FOOD
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA and GWILLI FOOD 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 CNVISION MEDIA and GWILLI FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and GWILLI FOOD, you can compare the effects of market volatilities on CNVISION MEDIA and GWILLI FOOD 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 CNVISION MEDIA with a short position of GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and GWILLI FOOD.
Diversification Opportunities for CNVISION MEDIA and GWILLI FOOD
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CNVISION and GWILLI is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD and CNVISION MEDIA 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 CNVISION MEDIA are associated (or correlated) with GWILLI FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWILLI FOOD has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and GWILLI FOOD go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and GWILLI FOOD
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 1.3 times more return on investment than GWILLI FOOD. However, CNVISION MEDIA is 1.3 times more volatile than GWILLI FOOD. It trades about 0.17 of its potential returns per unit of risk. GWILLI FOOD is currently generating about -0.12 per unit of risk. If you would invest 5.50 in CNVISION MEDIA on October 18, 2024 and sell it today you would earn a total of 0.40 from holding CNVISION MEDIA or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNVISION MEDIA vs. GWILLI FOOD
Performance |
| Timeline |
| CNVISION MEDIA |
| GWILLI FOOD |
CNVISION MEDIA and GWILLI FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and GWILLI FOOD
The main advantage of trading using opposite CNVISION MEDIA and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA position performs unexpectedly, GWILLI FOOD 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 GWILLI FOOD will offset losses from the drop in GWILLI FOOD's long position.| CNVISION MEDIA vs. MAG SILVER | CNVISION MEDIA vs. Motorcar Parts of | CNVISION MEDIA vs. Perseus Mining Limited | CNVISION MEDIA vs. Algonquin Power Utilities |
| GWILLI FOOD vs. LINMON MEDIA LTD | GWILLI FOOD vs. CNVISION MEDIA | GWILLI FOOD vs. PARKEN Sport Entertainment | GWILLI FOOD vs. T Mobile |
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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