Correlation Between G Willi and Dow Jones
Can any of the company-specific risk be diversified away by investing in both G Willi and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on G Willi and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Dow Jones.
Diversification Opportunities for G Willi and Dow Jones
Poor diversification
The 3 months correlation between WILC and Dow is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of G Willi i.e., G Willi and Dow Jones go up and down completely randomly.
Pair Corralation between G Willi and Dow Jones
Assuming the 90 days trading horizon G Willi is expected to generate 1.21 times less return on investment than Dow Jones. In addition to that, G Willi is 3.07 times more volatile than Dow Jones Industrial. It trades about 0.02 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 3,400,504 in Dow Jones Industrial on September 2, 2024 and sell it today you would earn a total of 1,090,561 from holding Dow Jones Industrial or generate 32.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 78.02% |
| Values | Daily Returns |
G Willi Food International vs. Dow Jones Industrial
Performance |
| Timeline |
G Willi and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
G Willi Food International
Pair trading matchups for G Willi
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with G Willi and Dow Jones
The main advantage of trading using opposite G Willi and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Dream Finders Homes | Dow Jones vs. GEN Restaurant Group, | Dow Jones vs. National Beverage Corp | Dow Jones vs. BJs Restaurants |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |