Correlation Between Natural Grocers and G Willi
Can any of the company-specific risk be diversified away by investing in both Natural Grocers and G Willi 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 Natural Grocers and G Willi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natural Grocers by and G Willi Food International, you can compare the effects of market volatilities on Natural Grocers and G Willi 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 Natural Grocers with a short position of G Willi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Grocers and G Willi.
Diversification Opportunities for Natural Grocers and G Willi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Natural and WILC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Natural Grocers by and G Willi Food International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Willi Food and Natural Grocers 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 Natural Grocers by are associated (or correlated) with G Willi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Willi Food has no effect on the direction of Natural Grocers i.e., Natural Grocers and G Willi go up and down completely randomly.
Pair Corralation between Natural Grocers and G Willi
Given the investment horizon of 90 days Natural Grocers by is expected to generate 1.45 times more return on investment than G Willi. However, Natural Grocers is 1.45 times more volatile than G Willi Food International. It trades about 0.22 of its potential returns per unit of risk. G Willi Food International is currently generating about -0.01 per unit of risk. If you would invest 3,972 in Natural Grocers by on November 1, 2024 and sell it today you would earn a total of 382.50 from holding Natural Grocers by or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Natural Grocers by vs. G Willi Food International
Performance |
| Timeline |
| Natural Grocers by |
| G Willi Food |
Natural Grocers and G Willi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Natural Grocers and G Willi
The main advantage of trading using opposite Natural Grocers and G Willi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Grocers position performs unexpectedly, G Willi 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 G Willi will offset losses from the drop in G Willi's long position.| Natural Grocers vs. Weis Markets | Natural Grocers vs. Ingles Markets Incorporated | Natural Grocers vs. Grocery Outlet Holding | Natural Grocers vs. Village Super Market |
| G Willi vs. Hf Foods Group | G Willi vs. Innovative Food Hldg | G Willi vs. Calavo Growers | G Willi vs. The Chefs Warehouse |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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