Correlation Between GWILLI FOOD and WT OFFSHORE
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and WT OFFSHORE 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 WT OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and WT OFFSHORE, you can compare the effects of market volatilities on GWILLI FOOD and WT OFFSHORE 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 WT OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and WT OFFSHORE.
Diversification Opportunities for GWILLI FOOD and WT OFFSHORE
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GWILLI and UWV is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and WT OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT OFFSHORE 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 WT OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT OFFSHORE has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and WT OFFSHORE go up and down completely randomly.
Pair Corralation between GWILLI FOOD and WT OFFSHORE
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 0.41 times more return on investment than WT OFFSHORE. However, GWILLI FOOD is 2.43 times less risky than WT OFFSHORE. It trades about 0.2 of its potential returns per unit of risk. WT OFFSHORE is currently generating about -0.08 per unit of risk. If you would invest 1,370 in GWILLI FOOD on October 30, 2024 and sell it today you would earn a total of 180.00 from holding GWILLI FOOD or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GWILLI FOOD vs. WT OFFSHORE
Performance |
| Timeline |
| GWILLI FOOD |
| WT OFFSHORE |
GWILLI FOOD and WT OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GWILLI FOOD and WT OFFSHORE
The main advantage of trading using opposite GWILLI FOOD and WT OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, WT OFFSHORE 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 WT OFFSHORE will offset losses from the drop in WT OFFSHORE's long position.| GWILLI FOOD vs. Burlington Stores | GWILLI FOOD vs. Ross Stores | GWILLI FOOD vs. PLANT VEDA FOODS | GWILLI FOOD vs. COSTCO WHOLESALE CDR |
| WT OFFSHORE vs. NAKED WINES PLC | WT OFFSHORE vs. Compagnie Plastic Omnium | WT OFFSHORE vs. Westinghouse Air Brake | WT OFFSHORE vs. Marie Brizard Wine |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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