Correlation Between National Presto and Wilhelmina
Can any of the company-specific risk be diversified away by investing in both National Presto and Wilhelmina 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 National Presto and Wilhelmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Presto Industries and Wilhelmina, you can compare the effects of market volatilities on National Presto and Wilhelmina 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 National Presto with a short position of Wilhelmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Presto and Wilhelmina.
Diversification Opportunities for National Presto and Wilhelmina
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Wilhelmina is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Presto Industries and Wilhelmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilhelmina and National Presto 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 National Presto Industries are associated (or correlated) with Wilhelmina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilhelmina has no effect on the direction of National Presto i.e., National Presto and Wilhelmina go up and down completely randomly.
Pair Corralation between National Presto and Wilhelmina
If you would invest 9,659 in National Presto Industries on November 9, 2024 and sell it today you would earn a total of 145.00 from holding National Presto Industries or generate 1.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
National Presto Industries vs. Wilhelmina
Performance |
| Timeline |
| National Presto Indu |
| Wilhelmina |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
National Presto and Wilhelmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Presto and Wilhelmina
The main advantage of trading using opposite National Presto and Wilhelmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Presto position performs unexpectedly, Wilhelmina 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 Wilhelmina will offset losses from the drop in Wilhelmina's long position.| National Presto vs. Park Electrochemical | National Presto vs. Ducommun Incorporated | National Presto vs. Innovative Solutions and | National Presto vs. VSE Corporation |
| Wilhelmina vs. Network 1 Technologies | Wilhelmina vs. Rentokil Initial PLC | Wilhelmina vs. Mader Group Limited | Wilhelmina vs. SPAR Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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