Correlation Between GWILLI FOOD and DEUTSCHE WOHNEN
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and DEUTSCHE WOHNEN 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 DEUTSCHE WOHNEN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and DEUTSCHE WOHNEN ADRS12, you can compare the effects of market volatilities on GWILLI FOOD and DEUTSCHE WOHNEN 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 DEUTSCHE WOHNEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and DEUTSCHE WOHNEN.
Diversification Opportunities for GWILLI FOOD and DEUTSCHE WOHNEN
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between GWILLI and DEUTSCHE is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and DEUTSCHE WOHNEN ADRS12 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DEUTSCHE WOHNEN ADRS12 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 DEUTSCHE WOHNEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DEUTSCHE WOHNEN ADRS12 has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and DEUTSCHE WOHNEN go up and down completely randomly.
Pair Corralation between GWILLI FOOD and DEUTSCHE WOHNEN
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 1.06 times more return on investment than DEUTSCHE WOHNEN. However, GWILLI FOOD is 1.06 times more volatile than DEUTSCHE WOHNEN ADRS12. It trades about 0.08 of its potential returns per unit of risk. DEUTSCHE WOHNEN ADRS12 is currently generating about 0.02 per unit of risk. If you would invest 977.00 in GWILLI FOOD on October 27, 2024 and sell it today you would earn a total of 583.00 from holding GWILLI FOOD or generate 59.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
GWILLI FOOD vs. DEUTSCHE WOHNEN ADRS12
Performance |
| Timeline |
| GWILLI FOOD |
| DEUTSCHE WOHNEN ADRS12 |
GWILLI FOOD and DEUTSCHE WOHNEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and DEUTSCHE WOHNEN
The main advantage of trading using opposite GWILLI FOOD and DEUTSCHE WOHNEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, DEUTSCHE WOHNEN 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 DEUTSCHE WOHNEN will offset losses from the drop in DEUTSCHE WOHNEN's long position.| GWILLI FOOD vs. Harmony Gold Mining | GWILLI FOOD vs. H2O Retailing | GWILLI FOOD vs. MARKET VECTR RETAIL | GWILLI FOOD vs. MINCO SILVER |
| DEUTSCHE WOHNEN vs. CarsalesCom | DEUTSCHE WOHNEN vs. GEELY AUTOMOBILE | DEUTSCHE WOHNEN vs. Carsales | DEUTSCHE WOHNEN vs. CARSALESCOM |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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