Correlation Between WEBUY GLOBAL and Almacenes Xito
Can any of the company-specific risk be diversified away by investing in both WEBUY GLOBAL and Almacenes Xito 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 WEBUY GLOBAL and Almacenes Xito into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WEBUY GLOBAL LTD and Almacenes xito SA, you can compare the effects of market volatilities on WEBUY GLOBAL and Almacenes Xito 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 WEBUY GLOBAL with a short position of Almacenes Xito. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEBUY GLOBAL and Almacenes Xito.
Diversification Opportunities for WEBUY GLOBAL and Almacenes Xito
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WEBUY and Almacenes is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding WEBUY GLOBAL LTD and Almacenes xito SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almacenes xito SA and WEBUY GLOBAL 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 WEBUY GLOBAL LTD are associated (or correlated) with Almacenes Xito. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almacenes xito SA has no effect on the direction of WEBUY GLOBAL i.e., WEBUY GLOBAL and Almacenes Xito go up and down completely randomly.
Pair Corralation between WEBUY GLOBAL and Almacenes Xito
Given the investment horizon of 90 days WEBUY GLOBAL LTD is expected to generate 13.34 times more return on investment than Almacenes Xito. However, WEBUY GLOBAL is 13.34 times more volatile than Almacenes xito SA. It trades about 0.14 of its potential returns per unit of risk. Almacenes xito SA is currently generating about -0.28 per unit of risk. If you would invest 13.00 in WEBUY GLOBAL LTD on August 27, 2024 and sell it today you would earn a total of 5.00 from holding WEBUY GLOBAL LTD or generate 38.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WEBUY GLOBAL LTD vs. Almacenes xito SA
Performance |
| Timeline |
| WEBUY GLOBAL LTD |
| Almacenes xito SA |
WEBUY GLOBAL and Almacenes Xito Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WEBUY GLOBAL and Almacenes Xito
The main advantage of trading using opposite WEBUY GLOBAL and Almacenes Xito positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEBUY GLOBAL position performs unexpectedly, Almacenes Xito 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 Almacenes Xito will offset losses from the drop in Almacenes Xito's long position.| WEBUY GLOBAL vs. MOGU Inc | WEBUY GLOBAL vs. iPower Inc | WEBUY GLOBAL vs. Jeffs Brands | WEBUY GLOBAL vs. Kidpik Corp |
| Almacenes Xito vs. MOGU Inc | Almacenes Xito vs. iPower Inc | Almacenes Xito vs. Jeffs Brands | Almacenes Xito vs. Kidpik Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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