Correlation Between Orsted AS and GWILLI FOOD
Can any of the company-specific risk be diversified away by investing in both Orsted AS 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 Orsted AS and GWILLI FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Orsted AS and GWILLI FOOD, you can compare the effects of market volatilities on Orsted AS 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 Orsted AS with a short position of GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orsted AS and GWILLI FOOD.
Diversification Opportunities for Orsted AS and GWILLI FOOD
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Orsted and GWILLI is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Orsted AS and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD and Orsted AS 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 Orsted AS 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 Orsted AS i.e., Orsted AS and GWILLI FOOD go up and down completely randomly.
Pair Corralation between Orsted AS and GWILLI FOOD
Assuming the 90 days horizon Orsted AS is expected to under-perform the GWILLI FOOD. In addition to that, Orsted AS is 2.33 times more volatile than GWILLI FOOD. It trades about -0.27 of its total potential returns per unit of risk. GWILLI FOOD is currently generating about -0.06 per unit of volatility. If you would invest 1,580 in GWILLI FOOD on October 30, 2024 and sell it today you would lose (30.00) from holding GWILLI FOOD or give up 1.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Orsted AS vs. GWILLI FOOD
Performance |
| Timeline |
| Orsted AS |
| GWILLI FOOD |
Orsted AS and GWILLI FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Orsted AS and GWILLI FOOD
The main advantage of trading using opposite Orsted AS and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orsted AS 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.| Orsted AS vs. Gaming and Leisure | Orsted AS vs. ARISTOCRAT LEISURE | Orsted AS vs. PLAYMATES TOYS | Orsted AS vs. CVW CLEANTECH INC |
| GWILLI FOOD vs. Burlington Stores | GWILLI FOOD vs. Ross Stores | GWILLI FOOD vs. PLANT VEDA FOODS | GWILLI FOOD vs. COSTCO WHOLESALE CDR |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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