Correlation Between G Willi and Adgar Investments
Can any of the company-specific risk be diversified away by investing in both G Willi and Adgar Investments 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 G Willi and Adgar Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Willi Food International and Adgar Investments and, you can compare the effects of market volatilities on G Willi and Adgar Investments 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 G Willi with a short position of Adgar Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Adgar Investments.
Diversification Opportunities for G Willi and Adgar Investments
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WILC and Adgar is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Adgar Investments and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adgar Investments and G Willi 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 G Willi Food International are associated (or correlated) with Adgar Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adgar Investments has no effect on the direction of G Willi i.e., G Willi and Adgar Investments go up and down completely randomly.
Pair Corralation between G Willi and Adgar Investments
Assuming the 90 days trading horizon G Willi Food International is expected to generate 0.98 times more return on investment than Adgar Investments. However, G Willi Food International is 1.02 times less risky than Adgar Investments. It trades about 0.01 of its potential returns per unit of risk. Adgar Investments and is currently generating about 0.01 per unit of risk. If you would invest 515,295 in G Willi Food International on September 1, 2024 and sell it today you would earn a total of 16,005 from holding G Willi Food International or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Willi Food International vs. Adgar Investments and
Performance |
| Timeline |
| G Willi Food |
| Adgar Investments |
G Willi and Adgar Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Adgar Investments
The main advantage of trading using opposite G Willi and Adgar Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, Adgar Investments 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 Adgar Investments will offset losses from the drop in Adgar Investments' long position.| G Willi vs. Retailors | G Willi vs. Meitav Trade Inv | G Willi vs. Technoplus Ventures | G Willi vs. Abra Information Technologies |
| Adgar Investments vs. Alony Hetz Properties | Adgar Investments vs. Azrieli Group | Adgar Investments vs. Migdal Insurance | Adgar Investments vs. Amot Investments |
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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