Correlation Between Tikun Olam and Willy Food
Can any of the company-specific risk be diversified away by investing in both Tikun Olam and Willy 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 Tikun Olam and Willy Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tikun Olam Cannbit and Willy Food, you can compare the effects of market volatilities on Tikun Olam and Willy 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 Tikun Olam with a short position of Willy Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tikun Olam and Willy Food.
Diversification Opportunities for Tikun Olam and Willy Food
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tikun and Willy is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tikun Olam Cannbit and Willy Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willy Food and Tikun Olam 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 Tikun Olam Cannbit are associated (or correlated) with Willy Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willy Food has no effect on the direction of Tikun Olam i.e., Tikun Olam and Willy Food go up and down completely randomly.
Pair Corralation between Tikun Olam and Willy Food
Assuming the 90 days trading horizon Tikun Olam is expected to generate 2.19 times less return on investment than Willy Food. In addition to that, Tikun Olam is 2.1 times more volatile than Willy Food. It trades about 0.01 of its total potential returns per unit of risk. Willy Food is currently generating about 0.04 per unit of volatility. If you would invest 218,000 in Willy Food on September 12, 2024 and sell it today you would earn a total of 40,300 from holding Willy Food or generate 18.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.61% |
| Values | Daily Returns |
Tikun Olam Cannbit vs. Willy Food
Performance |
| Timeline |
| Tikun Olam Cannbit |
| Willy Food |
Tikun Olam and Willy Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tikun Olam and Willy Food
The main advantage of trading using opposite Tikun Olam and Willy Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tikun Olam position performs unexpectedly, Willy 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 Willy Food will offset losses from the drop in Willy Food's long position.| Tikun Olam vs. Willy Food | Tikun Olam vs. Israel China Biotechnology | Tikun Olam vs. Harel Insurance Investments | Tikun Olam vs. G Willi Food International |
| Willy Food vs. Rami Levi | Willy Food vs. Neto ME Holdings | Willy Food vs. Shufersal | Willy Food vs. Strauss 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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