Correlation Between SERI INDUSTRIAL and GWILLI FOOD
Can any of the company-specific risk be diversified away by investing in both SERI INDUSTRIAL and GWILLI FOOD 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 SERI INDUSTRIAL and GWILLI FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SERI INDUSTRIAL EO and GWILLI FOOD, you can compare the effects of market volatilities on SERI INDUSTRIAL and GWILLI FOOD 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 SERI INDUSTRIAL with a short position of GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of SERI INDUSTRIAL and GWILLI FOOD.
Diversification Opportunities for SERI INDUSTRIAL and GWILLI FOOD
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SERI and GWILLI is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SERI INDUSTRIAL EO and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD and SERI INDUSTRIAL 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 SERI INDUSTRIAL EO are associated (or correlated) with GWILLI FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWILLI FOOD has no effect on the direction of SERI INDUSTRIAL i.e., SERI INDUSTRIAL and GWILLI FOOD go up and down completely randomly.
Pair Corralation between SERI INDUSTRIAL and GWILLI FOOD
Assuming the 90 days trading horizon SERI INDUSTRIAL EO is expected to under-perform the GWILLI FOOD. In addition to that, SERI INDUSTRIAL is 1.3 times more volatile than GWILLI FOOD. It trades about -0.24 of its total potential returns per unit of risk. GWILLI FOOD is currently generating about -0.03 per unit of volatility. If you would invest 1,520 in GWILLI FOOD on October 12, 2024 and sell it today you would lose (20.00) from holding GWILLI FOOD or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
SERI INDUSTRIAL EO vs. GWILLI FOOD
Performance |
| Timeline |
| SERI INDUSTRIAL EO |
| GWILLI FOOD |
SERI INDUSTRIAL and GWILLI FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SERI INDUSTRIAL and GWILLI FOOD
The main advantage of trading using opposite SERI INDUSTRIAL and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SERI INDUSTRIAL position performs unexpectedly, GWILLI FOOD 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 GWILLI FOOD will offset losses from the drop in GWILLI FOOD's long position.| SERI INDUSTRIAL vs. KIMBALL ELECTRONICS | SERI INDUSTRIAL vs. Renesas Electronics | SERI INDUSTRIAL vs. MINCO SILVER | SERI INDUSTRIAL vs. Aya Gold Silver |
| GWILLI FOOD vs. GRIFFIN MINING LTD | GWILLI FOOD vs. SERI INDUSTRIAL EO | GWILLI FOOD vs. Addus HomeCare | GWILLI FOOD vs. Focus Home Interactive |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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