Correlation Between Where Food and KWG Group
Can any of the company-specific risk be diversified away by investing in both Where Food and KWG Group 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 Where Food and KWG Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Where Food Comes and KWG Group Holdings, you can compare the effects of market volatilities on Where Food and KWG Group 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 Where Food with a short position of KWG Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Where Food and KWG Group.
Diversification Opportunities for Where Food and KWG Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Where and KWG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Where Food Comes and KWG Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KWG Group Holdings and Where Food 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 Where Food Comes are associated (or correlated) with KWG Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KWG Group Holdings has no effect on the direction of Where Food i.e., Where Food and KWG Group go up and down completely randomly.
Pair Corralation between Where Food and KWG Group
Given the investment horizon of 90 days Where Food Comes is expected to generate 0.94 times more return on investment than KWG Group. However, Where Food Comes is 1.07 times less risky than KWG Group. It trades about 0.0 of its potential returns per unit of risk. KWG Group Holdings is currently generating about -0.05 per unit of risk. If you would invest 1,424 in Where Food Comes on September 14, 2024 and sell it today you would lose (194.00) from holding Where Food Comes or give up 13.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Where Food Comes vs. KWG Group Holdings
Performance |
| Timeline |
| Where Food Comes |
| KWG Group Holdings |
Where Food and KWG Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Where Food and KWG Group
The main advantage of trading using opposite Where Food and KWG Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Where Food position performs unexpectedly, KWG Group 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 KWG Group will offset losses from the drop in KWG Group's long position.| Where Food vs. Dave Warrants | Where Food vs. Swvl Holdings Corp | Where Food vs. Guardforce AI Co | Where Food vs. Thayer Ventures Acquisition |
| KWG Group vs. BBB Foods | KWG Group vs. Gentex | KWG Group vs. Magna International | KWG Group vs. Where Food Comes |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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