Correlation Between WHOLE and Willamette Valley
Specify exactly 2 symbols:
By analyzing existing cross correlation between WHOLE FOODS MKT and Willamette Valley Vineyards, you can compare the effects of market volatilities on WHOLE and Willamette Valley 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 WHOLE with a short position of Willamette Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHOLE and Willamette Valley.
Diversification Opportunities for WHOLE and Willamette Valley
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between WHOLE and Willamette is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding WHOLE FOODS MKT and Willamette Valley Vineyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willamette Valley and WHOLE 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 WHOLE FOODS MKT are associated (or correlated) with Willamette Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willamette Valley has no effect on the direction of WHOLE i.e., WHOLE and Willamette Valley go up and down completely randomly.
Pair Corralation between WHOLE and Willamette Valley
Assuming the 90 days trading horizon WHOLE FOODS MKT is expected to generate 0.16 times more return on investment than Willamette Valley. However, WHOLE FOODS MKT is 6.26 times less risky than Willamette Valley. It trades about -0.09 of its potential returns per unit of risk. Willamette Valley Vineyards is currently generating about -0.07 per unit of risk. If you would invest 10,011 in WHOLE FOODS MKT on November 4, 2024 and sell it today you would lose (95.00) from holding WHOLE FOODS MKT or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.5% |
| Values | Daily Returns |
WHOLE FOODS MKT vs. Willamette Valley Vineyards
Performance |
| Timeline |
| WHOLE FOODS MKT |
| Willamette Valley |
WHOLE and Willamette Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHOLE and Willamette Valley
The main advantage of trading using opposite WHOLE and Willamette Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHOLE position performs unexpectedly, Willamette Valley 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 Willamette Valley will offset losses from the drop in Willamette Valley's long position.The idea behind WHOLE FOODS MKT and Willamette Valley Vineyards pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Pernod Ricard SA | Willamette Valley vs. Brown Forman | Willamette Valley 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |