Correlation Between GWILLI FOOD and Commercial Vehicle
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and Commercial Vehicle 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 Commercial Vehicle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and Commercial Vehicle Group, you can compare the effects of market volatilities on GWILLI FOOD and Commercial Vehicle 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 Commercial Vehicle. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and Commercial Vehicle.
Diversification Opportunities for GWILLI FOOD and Commercial Vehicle
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GWILLI and Commercial is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and Commercial Vehicle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial Vehicle 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 Commercial Vehicle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial Vehicle has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and Commercial Vehicle go up and down completely randomly.
Pair Corralation between GWILLI FOOD and Commercial Vehicle
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 0.93 times more return on investment than Commercial Vehicle. However, GWILLI FOOD is 1.07 times less risky than Commercial Vehicle. It trades about 0.04 of its potential returns per unit of risk. Commercial Vehicle Group is currently generating about -0.07 per unit of risk. If you would invest 1,096 in GWILLI FOOD on October 16, 2024 and sell it today you would earn a total of 414.00 from holding GWILLI FOOD or generate 37.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GWILLI FOOD vs. Commercial Vehicle Group
Performance |
| Timeline |
| GWILLI FOOD |
| Commercial Vehicle |
GWILLI FOOD and Commercial Vehicle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and Commercial Vehicle
The main advantage of trading using opposite GWILLI FOOD and Commercial Vehicle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, Commercial Vehicle 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 Commercial Vehicle will offset losses from the drop in Commercial Vehicle's long position.| GWILLI FOOD vs. Austevoll Seafood ASA | GWILLI FOOD vs. SENECA FOODS A | GWILLI FOOD vs. CanSino Biologics | GWILLI FOOD vs. National Beverage Corp |
| Commercial Vehicle vs. Gruppo Mutuionline SpA | Commercial Vehicle vs. GWILLI FOOD | Commercial Vehicle vs. SALESFORCE INC CDR | Commercial Vehicle vs. TYSON FOODS A |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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