Correlation Between Naked Wines and Ingram Micro
Can any of the company-specific risk be diversified away by investing in both Naked Wines and Ingram Micro 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 Naked Wines and Ingram Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Naked Wines plc and Ingram Micro, you can compare the effects of market volatilities on Naked Wines and Ingram Micro 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 Naked Wines with a short position of Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Wines and Ingram Micro.
Diversification Opportunities for Naked Wines and Ingram Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Naked and Ingram is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Naked Wines plc and Ingram Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro and Naked Wines 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 Naked Wines plc are associated (or correlated) with Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro has no effect on the direction of Naked Wines i.e., Naked Wines and Ingram Micro go up and down completely randomly.
Pair Corralation between Naked Wines and Ingram Micro
If you would invest (100.00) in Ingram Micro on September 19, 2024 and sell it today you would earn a total of 100.00 from holding Ingram Micro or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Naked Wines plc vs. Ingram Micro
Performance |
| Timeline |
| Naked Wines plc |
| Ingram Micro |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Naked Wines and Ingram Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naked Wines and Ingram Micro
The main advantage of trading using opposite Naked Wines and Ingram Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Wines position performs unexpectedly, Ingram Micro 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 Ingram Micro will offset losses from the drop in Ingram Micro's long position.| Naked Wines vs. Pernod Ricard SA | Naked Wines vs. Naked Wines plc | Naked Wines vs. Crimson Wine | Naked Wines vs. Brown Forman |
| Ingram Micro vs. Valneva SE ADR | Ingram Micro vs. Uber Technologies | Ingram Micro vs. NETGEAR | Ingram Micro vs. Naked Wines plc |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |