Correlation Between G Willi and Aura Investments
Can any of the company-specific risk be diversified away by investing in both G Willi and Aura 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 Aura 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 Aura Investments, you can compare the effects of market volatilities on G Willi and Aura 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 Aura Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Aura Investments.
Diversification Opportunities for G Willi and Aura Investments
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WILC and Aura is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Aura Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aura 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 Aura Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aura Investments has no effect on the direction of G Willi i.e., G Willi and Aura Investments go up and down completely randomly.
Pair Corralation between G Willi and Aura Investments
Assuming the 90 days trading horizon G Willi Food International is expected to generate 1.79 times more return on investment than Aura Investments. However, G Willi is 1.79 times more volatile than Aura Investments. It trades about 0.37 of its potential returns per unit of risk. Aura Investments is currently generating about 0.02 per unit of risk. If you would invest 440,400 in G Willi Food International on September 2, 2024 and sell it today you would earn a total of 90,900 from holding G Willi Food International or generate 20.64% 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. Aura Investments
Performance |
| Timeline |
| G Willi Food |
| Aura Investments |
G Willi and Aura Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Aura Investments
The main advantage of trading using opposite G Willi and Aura Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, Aura 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 Aura Investments will offset losses from the drop in Aura Investments' long position.| G Willi vs. Nice | G Willi vs. The Gold Bond | G Willi vs. Bank Leumi Le Israel | G Willi vs. ICL Israel Chemicals |
| Aura Investments vs. Fattal 1998 Holdings | Aura Investments vs. Azrieli Group | Aura Investments vs. Clal Insurance Enterprises |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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