Correlation Between Naked Wines and 50249AAH6
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By analyzing existing cross correlation between Naked Wines plc and LYB INTERNATIONAL FINANCE, you can compare the effects of market volatilities on Naked Wines and 50249AAH6 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 50249AAH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Wines and 50249AAH6.
Diversification Opportunities for Naked Wines and 50249AAH6
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Naked and 50249AAH6 is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Naked Wines plc and LYB INTERNATIONAL FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB INTERNATIONAL FINANCE 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 50249AAH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB INTERNATIONAL FINANCE has no effect on the direction of Naked Wines i.e., Naked Wines and 50249AAH6 go up and down completely randomly.
Pair Corralation between Naked Wines and 50249AAH6
Assuming the 90 days horizon Naked Wines plc is expected to generate 13.17 times more return on investment than 50249AAH6. However, Naked Wines is 13.17 times more volatile than LYB INTERNATIONAL FINANCE. It trades about 0.24 of its potential returns per unit of risk. LYB INTERNATIONAL FINANCE is currently generating about 0.16 per unit of risk. If you would invest 198.00 in Naked Wines plc on November 28, 2024 and sell it today you would earn a total of 79.00 from holding Naked Wines plc or generate 39.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Naked Wines plc vs. LYB INTERNATIONAL FINANCE
Performance |
| Timeline |
| Naked Wines plc |
| LYB INTERNATIONAL FINANCE |
Naked Wines and 50249AAH6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naked Wines and 50249AAH6
The main advantage of trading using opposite Naked Wines and 50249AAH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Wines position performs unexpectedly, 50249AAH6 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 50249AAH6 will offset losses from the drop in 50249AAH6'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 |
| 50249AAH6 vs. Black Spade Acquisition | 50249AAH6 vs. The Joint Corp | 50249AAH6 vs. Daily Journal Corp | 50249AAH6 vs. Freedom Holding 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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