Correlation Between Naked Wines and PHILIP
Specify exactly 2 symbols:
By analyzing existing cross correlation between Naked Wines plc and PHILIP MORRIS INTL, you can compare the effects of market volatilities on Naked Wines and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Naked Wines and PHILIP.
Diversification Opportunities for Naked Wines and PHILIP
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Naked and PHILIP is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Naked Wines plc and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of Naked Wines i.e., Naked Wines and PHILIP go up and down completely randomly.
Pair Corralation between Naked Wines and PHILIP
Assuming the 90 days horizon Naked Wines plc is expected to generate 0.12 times more return on investment than PHILIP. However, Naked Wines plc is 8.09 times less risky than PHILIP. It trades about -0.21 of its potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about -0.22 per unit of risk. If you would invest 271.00 in Naked Wines plc on September 13, 2024 and sell it today you would lose (1.00) from holding Naked Wines plc or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Naked Wines plc vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| Naked Wines plc |
| PHILIP MORRIS INTL |
Naked Wines and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Naked Wines and PHILIP
The main advantage of trading using opposite Naked Wines and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Naked Wines position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP'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 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |