Correlation Between G Willi and Retailors
Can any of the company-specific risk be diversified away by investing in both G Willi and Retailors 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 Retailors 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 Retailors, you can compare the effects of market volatilities on G Willi and Retailors 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 Retailors. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Retailors.
Diversification Opportunities for G Willi and Retailors
Poor diversification
The 3 months correlation between WILC and Retailors is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Retailors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retailors 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 Retailors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retailors has no effect on the direction of G Willi i.e., G Willi and Retailors go up and down completely randomly.
Pair Corralation between G Willi and Retailors
Assuming the 90 days trading horizon G Willi is expected to generate 5.54 times less return on investment than Retailors. But when comparing it to its historical volatility, G Willi Food International is 3.08 times less risky than Retailors. It trades about 0.28 of its potential returns per unit of risk. Retailors is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 671,700 in Retailors on November 29, 2024 and sell it today you would earn a total of 217,300 from holding Retailors or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
G Willi Food International vs. Retailors
Performance |
| Timeline |
| G Willi Food |
| Retailors |
G Willi and Retailors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Retailors
The main advantage of trading using opposite G Willi and Retailors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, Retailors 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 Retailors will offset losses from the drop in Retailors' long position.| G Willi vs. Golan Plastic | G Willi vs. Analyst IMS Investment | G Willi vs. Teuza A Fairchild | G Willi vs. Harel Insurance Investments |
| Retailors vs. Fox Wizel | Retailors vs. Terminal X Online | Retailors vs. Shufersal | Retailors vs. Israel Canada |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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