Correlation Between Millennium Food and G Willi
Can any of the company-specific risk be diversified away by investing in both Millennium Food and G Willi 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 Millennium Food and G Willi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Millennium Food Tech LP and G Willi Food International, you can compare the effects of market volatilities on Millennium Food and G Willi 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 Millennium Food with a short position of G Willi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Millennium Food and G Willi.
Diversification Opportunities for Millennium Food and G Willi
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Millennium and WILC is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Millennium Food Tech LP and G Willi Food International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Willi Food and Millennium 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 Millennium Food Tech LP are associated (or correlated) with G Willi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Willi Food has no effect on the direction of Millennium Food i.e., Millennium Food and G Willi go up and down completely randomly.
Pair Corralation between Millennium Food and G Willi
Assuming the 90 days trading horizon Millennium Food Tech LP is expected to under-perform the G Willi. But the stock apears to be less risky and, when comparing its historical volatility, Millennium Food Tech LP is 1.4 times less risky than G Willi. The stock trades about -0.1 of its potential returns per unit of risk. The G Willi Food International is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 450,700 in G Willi Food International on September 1, 2024 and sell it today you would earn a total of 80,600 from holding G Willi Food International or generate 17.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Millennium Food Tech LP vs. G Willi Food International
Performance |
| Timeline |
| Millennium Food Tech |
| G Willi Food |
Millennium Food and G Willi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Millennium Food and G Willi
The main advantage of trading using opposite Millennium Food and G Willi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Millennium Food position performs unexpectedly, G Willi 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 G Willi will offset losses from the drop in G Willi's long position.| Millennium Food vs. Harel Insurance Investments | Millennium Food vs. Rapac Communication Infrastructure | Millennium Food vs. ICL Israel Chemicals | Millennium Food vs. Bezeq Israeli Telecommunication |
| G Willi vs. Retailors | G Willi vs. Meitav Trade Inv | G Willi vs. Technoplus Ventures | G Willi vs. Abra Information Technologies |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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