Correlation Between WESTLIFE FOODWORLD and HEG
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By analyzing existing cross correlation between WESTLIFE FOODWORLD LIMITED and HEG Limited, you can compare the effects of market volatilities on WESTLIFE FOODWORLD and HEG 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 HEG. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESTLIFE FOODWORLD and HEG.
Diversification Opportunities for WESTLIFE FOODWORLD and HEG
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WESTLIFE and HEG is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding WESTLIFE FOODWORLD LIMITED and HEG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEG 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 HEG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEG Limited has no effect on the direction of WESTLIFE FOODWORLD i.e., WESTLIFE FOODWORLD and HEG go up and down completely randomly.
Pair Corralation between WESTLIFE FOODWORLD and HEG
Assuming the 90 days trading horizon WESTLIFE FOODWORLD is expected to generate 2.66 times less return on investment than HEG. But when comparing it to its historical volatility, WESTLIFE FOODWORLD LIMITED is 2.64 times less risky than HEG. It trades about 0.32 of its potential returns per unit of risk. HEG Limited is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 41,800 in HEG Limited on September 18, 2024 and sell it today you would earn a total of 16,070 from holding HEG Limited or generate 38.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WESTLIFE FOODWORLD LIMITED vs. HEG Limited
Performance |
| Timeline |
| WESTLIFE FOODWORLD |
| HEG Limited |
WESTLIFE FOODWORLD and HEG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESTLIFE FOODWORLD and HEG
The main advantage of trading using opposite WESTLIFE FOODWORLD and HEG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESTLIFE FOODWORLD position performs unexpectedly, HEG 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 HEG will offset losses from the drop in HEG's long position.| WESTLIFE FOODWORLD vs. Transport of | WESTLIFE FOODWORLD vs. Cholamandalam Investment and | WESTLIFE FOODWORLD vs. LLOYDS METALS AND | WESTLIFE FOODWORLD vs. Shyam Metalics and |
| HEG vs. NRB Industrial Bearings | HEG vs. WESTLIFE FOODWORLD LIMITED | HEG vs. Shivalik Bimetal Controls | HEG vs. Jubilant Foodworks Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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