Correlation Between GWILLI FOOD and FIRST SHIP
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and FIRST SHIP 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 FIRST SHIP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and FIRST SHIP LEASE, you can compare the effects of market volatilities on GWILLI FOOD and FIRST SHIP 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 FIRST SHIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and FIRST SHIP.
Diversification Opportunities for GWILLI FOOD and FIRST SHIP
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GWILLI and FIRST is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and FIRST SHIP LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SHIP LEASE 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 FIRST SHIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SHIP LEASE has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and FIRST SHIP go up and down completely randomly.
Pair Corralation between GWILLI FOOD and FIRST SHIP
Assuming the 90 days trading horizon GWILLI FOOD is expected to under-perform the FIRST SHIP. But the stock apears to be less risky and, when comparing its historical volatility, GWILLI FOOD is 1.54 times less risky than FIRST SHIP. The stock trades about -0.06 of its potential returns per unit of risk. The FIRST SHIP LEASE is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1.96 in FIRST SHIP LEASE on October 17, 2024 and sell it today you would earn a total of 0.38 from holding FIRST SHIP LEASE or generate 19.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GWILLI FOOD vs. FIRST SHIP LEASE
Performance |
| Timeline |
| GWILLI FOOD |
| FIRST SHIP LEASE |
GWILLI FOOD and FIRST SHIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and FIRST SHIP
The main advantage of trading using opposite GWILLI FOOD and FIRST SHIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, FIRST SHIP 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 FIRST SHIP will offset losses from the drop in FIRST SHIP's long position.| GWILLI FOOD vs. Corporate Office Properties | GWILLI FOOD vs. Yuexiu Transport Infrastructure | GWILLI FOOD vs. CENTURIA OFFICE REIT | GWILLI FOOD vs. Broadridge Financial Solutions |
| FIRST SHIP vs. Harmony Gold Mining | FIRST SHIP vs. MCEWEN MINING INC | FIRST SHIP vs. CN MODERN DAIRY | FIRST SHIP vs. GWILLI FOOD |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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