Correlation Between Naked Wines and DOMINION
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By analyzing existing cross correlation between Naked Wines plc and DOMINION ENERGY INC, you can compare the effects of market volatilities on Naked Wines and DOMINION 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 DOMINION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Wines and DOMINION.
Diversification Opportunities for Naked Wines and DOMINION
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Naked and DOMINION is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Naked Wines plc and DOMINION ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOMINION ENERGY INC 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 DOMINION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOMINION ENERGY INC has no effect on the direction of Naked Wines i.e., Naked Wines and DOMINION go up and down completely randomly.
Pair Corralation between Naked Wines and DOMINION
Assuming the 90 days horizon Naked Wines plc is expected to generate 5.8 times more return on investment than DOMINION. However, Naked Wines is 5.8 times more volatile than DOMINION ENERGY INC. It trades about 0.01 of its potential returns per unit of risk. DOMINION ENERGY INC is currently generating about 0.0 per unit of risk. If you would invest 550.00 in Naked Wines plc on September 2, 2024 and sell it today you would lose (279.00) from holding Naked Wines plc or give up 50.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.49% |
| Values | Daily Returns |
Naked Wines plc vs. DOMINION ENERGY INC
Performance |
| Timeline |
| Naked Wines plc |
| DOMINION ENERGY INC |
Naked Wines and DOMINION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naked Wines and DOMINION
The main advantage of trading using opposite Naked Wines and DOMINION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Wines position performs unexpectedly, DOMINION 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 DOMINION will offset losses from the drop in DOMINION's long position.| Naked Wines vs. Diageo PLC ADR | Naked Wines vs. Pernod Ricard SA | Naked Wines vs. Constellation Brands Class | Naked Wines vs. Brown Forman |
| DOMINION vs. NI Holdings | DOMINION vs. Aegon NV ADR | DOMINION vs. Aspen Insurance Holdings | DOMINION vs. Avient Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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