Correlation Between GWILLI FOOD and Daimler Truck
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and Daimler Truck 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 Daimler Truck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and Daimler Truck Holding, you can compare the effects of market volatilities on GWILLI FOOD and Daimler Truck 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 Daimler Truck. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and Daimler Truck.
Diversification Opportunities for GWILLI FOOD and Daimler Truck
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between GWILLI and Daimler is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and Daimler Truck Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Daimler Truck Holding 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 Daimler Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Daimler Truck Holding has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and Daimler Truck go up and down completely randomly.
Pair Corralation between GWILLI FOOD and Daimler Truck
Assuming the 90 days trading horizon GWILLI FOOD is expected to under-perform the Daimler Truck. In addition to that, GWILLI FOOD is 1.05 times more volatile than Daimler Truck Holding. It trades about -0.03 of its total potential returns per unit of risk. Daimler Truck Holding is currently generating about 0.1 per unit of volatility. If you would invest 3,722 in Daimler Truck Holding on October 12, 2024 and sell it today you would earn a total of 116.00 from holding Daimler Truck Holding or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GWILLI FOOD vs. Daimler Truck Holding
Performance |
| Timeline |
| GWILLI FOOD |
| Daimler Truck Holding |
GWILLI FOOD and Daimler Truck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and Daimler Truck
The main advantage of trading using opposite GWILLI FOOD and Daimler Truck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, Daimler Truck 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 Daimler Truck will offset losses from the drop in Daimler Truck's long position.| GWILLI FOOD vs. GRIFFIN MINING LTD | GWILLI FOOD vs. SERI INDUSTRIAL EO | GWILLI FOOD vs. Addus HomeCare | GWILLI FOOD vs. Focus Home Interactive |
| Daimler Truck vs. UPDATE SOFTWARE | Daimler Truck vs. GWILLI FOOD | Daimler Truck vs. National Beverage Corp | Daimler Truck vs. SCOTT TECHNOLOGY |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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