Correlation Between Discount Print and Wilhelmina

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Can any of the company-specific risk be diversified away by investing in both Discount Print and Wilhelmina 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 Discount Print and Wilhelmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Discount Print USA and Wilhelmina, you can compare the effects of market volatilities on Discount Print and Wilhelmina 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 Discount Print with a short position of Wilhelmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Discount Print and Wilhelmina.

Diversification Opportunities for Discount Print and Wilhelmina

DiscountWilhelminaDiversified AwayDiscountWilhelminaDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Discount and Wilhelmina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Discount Print USA and Wilhelmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilhelmina and Discount Print 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 Discount Print USA are associated (or correlated) with Wilhelmina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilhelmina has no effect on the direction of Discount Print i.e., Discount Print and Wilhelmina go up and down completely randomly.

Pair Corralation between Discount Print and Wilhelmina

If you would invest  0.02  in Discount Print USA on November 27, 2024 and sell it today you would earn a total of  0.01  from holding Discount Print USA or generate 50.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Discount Print USA  vs.  Wilhelmina

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -70-60-50-40-30-20-10
JavaScript chart by amCharts 3.21.15DPUI WHLM
       Timeline  
Discount Print USA 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Discount Print USA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly sluggish basic indicators, Discount Print demonstrated solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.00010.000150.00020.000250.00030.000350.00040.000450.0005
Wilhelmina 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Wilhelmina has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Wilhelmina is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Discount Print and Wilhelmina Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-84.93-63.61-42.29-20.970.021.6444.0266.488.78111.16 0.00010.00020.00030.00040.0005
JavaScript chart by amCharts 3.21.15DPUI WHLM
       Returns  

Pair Trading with Discount Print and Wilhelmina

The main advantage of trading using opposite Discount Print and Wilhelmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Discount Print position performs unexpectedly, Wilhelmina 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 Wilhelmina will offset losses from the drop in Wilhelmina's long position.
The idea behind Discount Print USA and Wilhelmina pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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