Correlation Between Now and Wilmar International
Can any of the company-specific risk be diversified away by investing in both Now and Wilmar International 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 Now and Wilmar International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Now Inc and Wilmar International Limited, you can compare the effects of market volatilities on Now and Wilmar International 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 Now with a short position of Wilmar International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Now and Wilmar International.
Diversification Opportunities for Now and Wilmar International
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Now and Wilmar is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Now Inc and Wilmar International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmar International and Now 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 Now Inc are associated (or correlated) with Wilmar International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmar International has no effect on the direction of Now i.e., Now and Wilmar International go up and down completely randomly.
Pair Corralation between Now and Wilmar International
Given the investment horizon of 90 days Now Inc is expected to generate 0.59 times more return on investment than Wilmar International. However, Now Inc is 1.7 times less risky than Wilmar International. It trades about 0.08 of its potential returns per unit of risk. Wilmar International Limited is currently generating about 0.03 per unit of risk. If you would invest 970.00 in Now Inc on November 5, 2024 and sell it today you would earn a total of 521.00 from holding Now Inc or generate 53.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.71% |
| Values | Daily Returns |
Now Inc vs. Wilmar International Limited
Performance |
| Timeline |
| Now Inc |
| Wilmar International |
Now and Wilmar International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Now and Wilmar International
The main advantage of trading using opposite Now and Wilmar International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Now position performs unexpectedly, Wilmar International 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 Wilmar International will offset losses from the drop in Wilmar International's long position.| Now vs. Oil States International | Now vs. Oceaneering International | Now vs. Geospace Technologies | Now vs. Enerflex |
| Wilmar International vs. Fresh Del Monte | Wilmar International vs. Limoneira Co | Wilmar International vs. Brasilagro Adr | Wilmar International vs. Alico Inc |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |