Correlation Between Tokyu Construction and GWILLI FOOD
Can any of the company-specific risk be diversified away by investing in both Tokyu Construction 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 Tokyu Construction and GWILLI FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tokyu Construction Co and GWILLI FOOD, you can compare the effects of market volatilities on Tokyu Construction 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 Tokyu Construction with a short position of GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tokyu Construction and GWILLI FOOD.
Diversification Opportunities for Tokyu Construction and GWILLI FOOD
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tokyu and GWILLI is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tokyu Construction Co and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD and Tokyu Construction 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 Tokyu Construction Co 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 Tokyu Construction i.e., Tokyu Construction and GWILLI FOOD go up and down completely randomly.
Pair Corralation between Tokyu Construction and GWILLI FOOD
Assuming the 90 days horizon Tokyu Construction is expected to generate 21.41 times less return on investment than GWILLI FOOD. But when comparing it to its historical volatility, Tokyu Construction Co is 2.1 times less risky than GWILLI FOOD. It trades about 0.0 of its potential returns per unit of risk. GWILLI FOOD is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,208 in GWILLI FOOD on October 11, 2024 and sell it today you would earn a total of 292.00 from holding GWILLI FOOD or generate 24.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tokyu Construction Co vs. GWILLI FOOD
Performance |
| Timeline |
| Tokyu Construction |
| GWILLI FOOD |
Tokyu Construction and GWILLI FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tokyu Construction and GWILLI FOOD
The main advantage of trading using opposite Tokyu Construction and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tokyu Construction 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.| Tokyu Construction vs. SOEDER SPORTFISKE AB | Tokyu Construction vs. NTG Nordic Transport | Tokyu Construction vs. DEVRY EDUCATION GRP | Tokyu Construction vs. TITANIUM TRANSPORTGROUP |
| GWILLI FOOD vs. TRADELINK ELECTRON | GWILLI FOOD vs. Salesforce | GWILLI FOOD vs. CarsalesCom | GWILLI FOOD vs. Tradegate AG Wertpapierhandelsbank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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