Correlation Between NAKED WINES and Hawesko Holding
Can any of the company-specific risk be diversified away by investing in both NAKED WINES and Hawesko Holding 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 Hawesko Holding 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 Hawesko Holding AG, you can compare the effects of market volatilities on NAKED WINES and Hawesko Holding 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 Hawesko Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAKED WINES and Hawesko Holding.
Diversification Opportunities for NAKED WINES and Hawesko Holding
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NAKED and Hawesko is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding NAKED WINES PLC and Hawesko Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawesko Holding AG 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 Hawesko Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawesko Holding AG has no effect on the direction of NAKED WINES i.e., NAKED WINES and Hawesko Holding go up and down completely randomly.
Pair Corralation between NAKED WINES and Hawesko Holding
Assuming the 90 days horizon NAKED WINES PLC is expected to generate 2.83 times more return on investment than Hawesko Holding. However, NAKED WINES is 2.83 times more volatile than Hawesko Holding AG. It trades about 0.28 of its potential returns per unit of risk. Hawesko Holding AG is currently generating about -0.02 per unit of risk. If you would invest 54.00 in NAKED WINES PLC on November 27, 2024 and sell it today you would earn a total of 15.00 from holding NAKED WINES PLC or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAKED WINES PLC vs. Hawesko Holding AG
Performance |
| Timeline |
| NAKED WINES PLC |
| Hawesko Holding AG |
NAKED WINES and Hawesko Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAKED WINES and Hawesko Holding
The main advantage of trading using opposite NAKED WINES and Hawesko Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAKED WINES position performs unexpectedly, Hawesko Holding 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 Hawesko Holding will offset losses from the drop in Hawesko Holding's long position.| NAKED WINES vs. EITZEN CHEMICALS | NAKED WINES vs. Fair Value Reit | NAKED WINES vs. Television Broadcasts Limited | NAKED WINES vs. ALTAIR RES INC |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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