Correlation Between Whirlpool and Gogoro
Can any of the company-specific risk be diversified away by investing in both Whirlpool and Gogoro 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 Whirlpool and Gogoro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whirlpool and Gogoro Inc, you can compare the effects of market volatilities on Whirlpool and Gogoro 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 Whirlpool with a short position of Gogoro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whirlpool and Gogoro.
Diversification Opportunities for Whirlpool and Gogoro
Excellent diversification
The 3 months correlation between Whirlpool and Gogoro is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool and Gogoro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gogoro Inc and Whirlpool 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 Whirlpool are associated (or correlated) with Gogoro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gogoro Inc has no effect on the direction of Whirlpool i.e., Whirlpool and Gogoro go up and down completely randomly.
Pair Corralation between Whirlpool and Gogoro
Considering the 90-day investment horizon Whirlpool is expected to generate 0.52 times more return on investment than Gogoro. However, Whirlpool is 1.91 times less risky than Gogoro. It trades about 0.0 of its potential returns per unit of risk. Gogoro Inc is currently generating about -0.06 per unit of risk. If you would invest 12,725 in Whirlpool on August 30, 2024 and sell it today you would lose (1,545) from holding Whirlpool or give up 12.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Whirlpool vs. Gogoro Inc
Performance |
| Timeline |
| Whirlpool |
| Gogoro Inc |
Whirlpool and Gogoro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whirlpool and Gogoro
The main advantage of trading using opposite Whirlpool and Gogoro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whirlpool position performs unexpectedly, Gogoro 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 Gogoro will offset losses from the drop in Gogoro's long position.| Whirlpool vs. Ethan Allen Interiors | Whirlpool vs. Mohawk Industries | Whirlpool vs. Tempur Sealy International | Whirlpool vs. MillerKnoll |
| Gogoro vs. Motorcar Parts of | Gogoro vs. Stoneridge | Gogoro vs. Superior Industries International | Gogoro vs. Lear Corporation |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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