Correlation Between World Houseware and SFL
Can any of the company-specific risk be diversified away by investing in both World Houseware and SFL 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 World Houseware and SFL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between World Houseware Limited and SFL Corporation, you can compare the effects of market volatilities on World Houseware and SFL 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 World Houseware with a short position of SFL. Check out your portfolio center. Please also check ongoing floating volatility patterns of World Houseware and SFL.
Diversification Opportunities for World Houseware and SFL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between World and SFL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding World Houseware Limited and SFL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SFL Corporation and World Houseware 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 World Houseware Limited are associated (or correlated) with SFL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SFL Corporation has no effect on the direction of World Houseware i.e., World Houseware and SFL go up and down completely randomly.
Pair Corralation between World Houseware and SFL
Assuming the 90 days horizon World Houseware Limited is expected to under-perform the SFL. In addition to that, World Houseware is 2.68 times more volatile than SFL Corporation. It trades about -0.01 of its total potential returns per unit of risk. SFL Corporation is currently generating about 0.04 per unit of volatility. If you would invest 832.00 in SFL Corporation on August 23, 2024 and sell it today you would earn a total of 257.00 from holding SFL Corporation or generate 30.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
World Houseware Limited vs. SFL Corp.
Performance |
| Timeline |
| World Houseware |
| SFL Corporation |
World Houseware and SFL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with World Houseware and SFL
The main advantage of trading using opposite World Houseware and SFL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if World Houseware position performs unexpectedly, SFL 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 SFL will offset losses from the drop in SFL's long position.| World Houseware vs. Trane Technologies plc | World Houseware vs. Carrier Global Corp | World Houseware vs. Johnson Controls International | World Houseware vs. Daikin Industries Ltd |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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