Correlation Between Computer Direct and G Willi
Can any of the company-specific risk be diversified away by investing in both Computer Direct 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 Computer Direct and G Willi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Direct and G Willi Food International, you can compare the effects of market volatilities on Computer Direct 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 Computer Direct with a short position of G Willi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Direct and G Willi.
Diversification Opportunities for Computer Direct and G Willi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Computer and WILC is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Computer Direct 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 Computer Direct 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 Computer Direct 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 Computer Direct i.e., Computer Direct and G Willi go up and down completely randomly.
Pair Corralation between Computer Direct and G Willi
Assuming the 90 days trading horizon Computer Direct is expected to generate 0.67 times more return on investment than G Willi. However, Computer Direct is 1.5 times less risky than G Willi. It trades about 0.64 of its potential returns per unit of risk. G Willi Food International is currently generating about 0.31 per unit of risk. If you would invest 2,922,000 in Computer Direct on September 1, 2024 and sell it today you would earn a total of 773,000 from holding Computer Direct or generate 26.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Computer Direct vs. G Willi Food International
Performance |
| Timeline |
| Computer Direct |
| G Willi Food |
Computer Direct and G Willi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Direct and G Willi
The main advantage of trading using opposite Computer Direct and G Willi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Direct 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.| Computer Direct vs. Palram | Computer Direct vs. Shagrir Group Vehicle | Computer Direct vs. EN Shoham Business | Computer Direct vs. Shufersal |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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