Correlation Between GWILLI FOOD and PACIFIC ONLINE
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and PACIFIC ONLINE 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 GWILLI FOOD and PACIFIC ONLINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and PACIFIC ONLINE, you can compare the effects of market volatilities on GWILLI FOOD and PACIFIC ONLINE 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 GWILLI FOOD with a short position of PACIFIC ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and PACIFIC ONLINE.
Diversification Opportunities for GWILLI FOOD and PACIFIC ONLINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GWILLI and PACIFIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and PACIFIC ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC ONLINE and GWILLI FOOD 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 GWILLI FOOD are associated (or correlated) with PACIFIC ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC ONLINE has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and PACIFIC ONLINE go up and down completely randomly.
Pair Corralation between GWILLI FOOD and PACIFIC ONLINE
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 1.2 times less return on investment than PACIFIC ONLINE. In addition to that, GWILLI FOOD is 1.28 times more volatile than PACIFIC ONLINE. It trades about 0.03 of its total potential returns per unit of risk. PACIFIC ONLINE is currently generating about 0.04 per unit of volatility. If you would invest 10.00 in PACIFIC ONLINE on October 13, 2024 and sell it today you would earn a total of 5.00 from holding PACIFIC ONLINE or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
GWILLI FOOD vs. PACIFIC ONLINE
Performance |
| Timeline |
| GWILLI FOOD |
| PACIFIC ONLINE |
GWILLI FOOD and PACIFIC ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and PACIFIC ONLINE
The main advantage of trading using opposite GWILLI FOOD and PACIFIC ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, PACIFIC ONLINE 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 PACIFIC ONLINE will offset losses from the drop in PACIFIC ONLINE's long position.| GWILLI FOOD vs. INTERCONT HOTELS | GWILLI FOOD vs. MCEWEN MINING INC | GWILLI FOOD vs. Zijin Mining Group | GWILLI FOOD vs. Coffee Holding Co |
| PACIFIC ONLINE vs. SAN MIGUEL BREWERY | PACIFIC ONLINE vs. GWILLI FOOD | PACIFIC ONLINE vs. Tyson Foods | PACIFIC ONLINE vs. Carnegie Clean Energy |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |