Correlation Between Treasury Wine and Hawesko Holding
Can any of the company-specific risk be diversified away by investing in both Treasury Wine 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 Treasury Wine and Hawesko Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Treasury Wine Estates and Hawesko Holding AG, you can compare the effects of market volatilities on Treasury Wine 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 Treasury Wine with a short position of Hawesko Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Treasury Wine and Hawesko Holding.
Diversification Opportunities for Treasury Wine and Hawesko Holding
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Treasury and Hawesko is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Treasury Wine Estates 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 Treasury Wine 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 Treasury Wine Estates 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 Treasury Wine i.e., Treasury Wine and Hawesko Holding go up and down completely randomly.
Pair Corralation between Treasury Wine and Hawesko Holding
Assuming the 90 days horizon Treasury Wine Estates is expected to generate 0.91 times more return on investment than Hawesko Holding. However, Treasury Wine Estates is 1.09 times less risky than Hawesko Holding. It trades about 0.0 of its potential returns per unit of risk. Hawesko Holding AG is currently generating about -0.04 per unit of risk. If you would invest 761.00 in Treasury Wine Estates on September 12, 2024 and sell it today you would lose (70.00) from holding Treasury Wine Estates or give up 9.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Treasury Wine Estates vs. Hawesko Holding AG
Performance |
| Timeline |
| Treasury Wine Estates |
| Hawesko Holding AG |
Treasury Wine and Hawesko Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Treasury Wine and Hawesko Holding
The main advantage of trading using opposite Treasury Wine and Hawesko Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Treasury Wine 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.| Treasury Wine vs. INDO RAMA SYNTHETIC | Treasury Wine vs. COMMERCIAL VEHICLE | Treasury Wine vs. SHIN ETSU CHEMICAL | Treasury Wine vs. Carsales |
| Hawesko Holding vs. Diageo plc | Hawesko Holding vs. Thai Beverage Public | Hawesko Holding vs. Rmy Cointreau SA | Hawesko Holding vs. Treasury Wine Estates |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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