Correlation Between GWILLI FOOD and Dassault Systmes
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and Dassault Systmes 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 Dassault Systmes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and Dassault Systmes SE, you can compare the effects of market volatilities on GWILLI FOOD and Dassault Systmes 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 Dassault Systmes. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and Dassault Systmes.
Diversification Opportunities for GWILLI FOOD and Dassault Systmes
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GWILLI and Dassault is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and Dassault Systmes SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dassault Systmes 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 Dassault Systmes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dassault Systmes has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and Dassault Systmes go up and down completely randomly.
Pair Corralation between GWILLI FOOD and Dassault Systmes
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 1.59 times more return on investment than Dassault Systmes. However, GWILLI FOOD is 1.59 times more volatile than Dassault Systmes SE. It trades about 0.06 of its potential returns per unit of risk. Dassault Systmes SE is currently generating about -0.02 per unit of risk. If you would invest 981.00 in GWILLI FOOD on December 12, 2024 and sell it today you would earn a total of 519.00 from holding GWILLI FOOD or generate 52.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GWILLI FOOD vs. Dassault Systmes SE
Performance |
| Timeline |
| GWILLI FOOD |
| Dassault Systmes |
GWILLI FOOD and Dassault Systmes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and Dassault Systmes
The main advantage of trading using opposite GWILLI FOOD and Dassault Systmes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, Dassault Systmes 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 Dassault Systmes will offset losses from the drop in Dassault Systmes' long position.| GWILLI FOOD vs. PACIFIC ONLINE | ||
| GWILLI FOOD vs. BOS BETTER ONLINE | ||
| GWILLI FOOD vs. CODERE ONLINE LUX | ||
| GWILLI FOOD vs. MUTUIONLINE |
| Dassault Systmes vs. UNITED RENTALS | ||
| Dassault Systmes vs. Check Point Software | ||
| Dassault Systmes vs. LOANDEPOT INC A | ||
| Dassault Systmes vs. Constellation Software |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| 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 | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |