Correlation Between Consolidated Construction and WESTLIFE FOODWORLD
Specify exactly 2 symbols:
By analyzing existing cross correlation between Consolidated Construction Consortium and WESTLIFE FOODWORLD LIMITED, you can compare the effects of market volatilities on Consolidated Construction and WESTLIFE FOODWORLD 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 Consolidated Construction with a short position of WESTLIFE FOODWORLD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consolidated Construction and WESTLIFE FOODWORLD.
Diversification Opportunities for Consolidated Construction and WESTLIFE FOODWORLD
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Consolidated and WESTLIFE is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Consolidated Construction Cons and WESTLIFE FOODWORLD LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESTLIFE FOODWORLD and Consolidated Construction 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 Consolidated Construction Consortium are associated (or correlated) with WESTLIFE FOODWORLD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESTLIFE FOODWORLD has no effect on the direction of Consolidated Construction i.e., Consolidated Construction and WESTLIFE FOODWORLD go up and down completely randomly.
Pair Corralation between Consolidated Construction and WESTLIFE FOODWORLD
Assuming the 90 days trading horizon Consolidated Construction Consortium is expected to generate 1.57 times more return on investment than WESTLIFE FOODWORLD. However, Consolidated Construction is 1.57 times more volatile than WESTLIFE FOODWORLD LIMITED. It trades about -0.02 of its potential returns per unit of risk. WESTLIFE FOODWORLD LIMITED is currently generating about -0.04 per unit of risk. If you would invest 1,895 in Consolidated Construction Consortium on October 30, 2024 and sell it today you would lose (88.00) from holding Consolidated Construction Consortium or give up 4.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consolidated Construction Cons vs. WESTLIFE FOODWORLD LIMITED
Performance |
| Timeline |
| Consolidated Construction |
| WESTLIFE FOODWORLD |
Consolidated Construction and WESTLIFE FOODWORLD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consolidated Construction and WESTLIFE FOODWORLD
The main advantage of trading using opposite Consolidated Construction and WESTLIFE FOODWORLD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consolidated Construction position performs unexpectedly, WESTLIFE FOODWORLD 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 WESTLIFE FOODWORLD will offset losses from the drop in WESTLIFE FOODWORLD's long position.The idea behind Consolidated Construction Consortium and WESTLIFE FOODWORLD LIMITED pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |