Correlation Between GWILLI FOOD and InterContinental
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and InterContinental 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 InterContinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and InterContinental Hotels Group, you can compare the effects of market volatilities on GWILLI FOOD and InterContinental 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 InterContinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and InterContinental.
Diversification Opportunities for GWILLI FOOD and InterContinental
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GWILLI and InterContinental is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and InterContinental Hotels Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InterContinental Hotels 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 InterContinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InterContinental Hotels has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and InterContinental go up and down completely randomly.
Pair Corralation between GWILLI FOOD and InterContinental
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 1.62 times less return on investment than InterContinental. In addition to that, GWILLI FOOD is 2.08 times more volatile than InterContinental Hotels Group. It trades about 0.03 of its total potential returns per unit of risk. InterContinental Hotels Group is currently generating about 0.11 per unit of volatility. If you would invest 6,196 in InterContinental Hotels Group on October 27, 2024 and sell it today you would earn a total of 6,304 from holding InterContinental Hotels Group or generate 101.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GWILLI FOOD vs. InterContinental Hotels Group
Performance |
| Timeline |
| GWILLI FOOD |
| InterContinental Hotels |
GWILLI FOOD and InterContinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and InterContinental
The main advantage of trading using opposite GWILLI FOOD and InterContinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, InterContinental 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 InterContinental will offset losses from the drop in InterContinental'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 |
| InterContinental vs. AGNC INVESTMENT | InterContinental vs. HK Electric Investments | InterContinental vs. Addus HomeCare | InterContinental vs. Haverty Furniture Companies |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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