Correlation Between G Willi and Above Food
Can any of the company-specific risk be diversified away by investing in both G Willi and Above Food 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 Above Food 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 Above Food Ingredients, you can compare the effects of market volatilities on G Willi and Above Food 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 Above Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Above Food.
Diversification Opportunities for G Willi and Above Food
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between WILC and Above is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Above Food Ingredients in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Above Food Ingredients 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 Above Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Above Food Ingredients has no effect on the direction of G Willi i.e., G Willi and Above Food go up and down completely randomly.
Pair Corralation between G Willi and Above Food
Given the investment horizon of 90 days G Willi is expected to generate 5.42 times less return on investment than Above Food. But when comparing it to its historical volatility, G Willi Food International is 6.42 times less risky than Above Food. It trades about 0.22 of its potential returns per unit of risk. Above Food Ingredients is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1.37 in Above Food Ingredients on August 31, 2024 and sell it today you would earn a total of 0.73 from holding Above Food Ingredients or generate 53.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Willi Food International vs. Above Food Ingredients
Performance |
| Timeline |
| G Willi Food |
| Above Food Ingredients |
G Willi and Above Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Above Food
The main advantage of trading using opposite G Willi and Above Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, Above Food 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 Above Food will offset losses from the drop in Above Food's long position.| G Willi vs. Hf Foods Group | G Willi vs. Innovative Food Hldg | G Willi vs. Calavo Growers | G Willi vs. The Chefs Warehouse |
| Above Food vs. Ainsworth Game Technology | Above Food vs. Willscot Mobile Mini | Above Food vs. Avis Budget Group | Above Food vs. Hertz Global Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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