Correlation Between WESTLIFE FOODWORLD and AGI Greenpac
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By analyzing existing cross correlation between WESTLIFE FOODWORLD LIMITED and AGI Greenpac Limited, you can compare the effects of market volatilities on WESTLIFE FOODWORLD and AGI Greenpac 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 WESTLIFE FOODWORLD with a short position of AGI Greenpac. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESTLIFE FOODWORLD and AGI Greenpac.
Diversification Opportunities for WESTLIFE FOODWORLD and AGI Greenpac
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WESTLIFE and AGI is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding WESTLIFE FOODWORLD LIMITED and AGI Greenpac Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGI Greenpac Limited and WESTLIFE FOODWORLD 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 WESTLIFE FOODWORLD LIMITED are associated (or correlated) with AGI Greenpac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGI Greenpac Limited has no effect on the direction of WESTLIFE FOODWORLD i.e., WESTLIFE FOODWORLD and AGI Greenpac go up and down completely randomly.
Pair Corralation between WESTLIFE FOODWORLD and AGI Greenpac
Assuming the 90 days trading horizon WESTLIFE FOODWORLD LIMITED is expected to generate 0.56 times more return on investment than AGI Greenpac. However, WESTLIFE FOODWORLD LIMITED is 1.77 times less risky than AGI Greenpac. It trades about -0.21 of its potential returns per unit of risk. AGI Greenpac Limited is currently generating about -0.22 per unit of risk. If you would invest 81,905 in WESTLIFE FOODWORLD LIMITED on October 25, 2024 and sell it today you would lose (6,875) from holding WESTLIFE FOODWORLD LIMITED or give up 8.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WESTLIFE FOODWORLD LIMITED vs. AGI Greenpac Limited
Performance |
| Timeline |
| WESTLIFE FOODWORLD |
| AGI Greenpac Limited |
WESTLIFE FOODWORLD and AGI Greenpac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESTLIFE FOODWORLD and AGI Greenpac
The main advantage of trading using opposite WESTLIFE FOODWORLD and AGI Greenpac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESTLIFE FOODWORLD position performs unexpectedly, AGI Greenpac 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 AGI Greenpac will offset losses from the drop in AGI Greenpac's long position.| WESTLIFE FOODWORLD vs. Reliance Industries Limited | WESTLIFE FOODWORLD vs. HDFC Bank Limited | WESTLIFE FOODWORLD vs. Bharti Airtel Limited | WESTLIFE FOODWORLD vs. State Bank of |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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