Correlation Between G Willi and Sendas Distribuidora
Can any of the company-specific risk be diversified away by investing in both G Willi and Sendas Distribuidora 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 Sendas Distribuidora 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 Sendas Distribuidora SA, you can compare the effects of market volatilities on G Willi and Sendas Distribuidora 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 Sendas Distribuidora. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Sendas Distribuidora.
Diversification Opportunities for G Willi and Sendas Distribuidora
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WILC and Sendas is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Sendas Distribuidora SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sendas Distribuidora 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 Sendas Distribuidora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sendas Distribuidora has no effect on the direction of G Willi i.e., G Willi and Sendas Distribuidora go up and down completely randomly.
Pair Corralation between G Willi and Sendas Distribuidora
Given the investment horizon of 90 days G Willi Food International is expected to generate 0.77 times more return on investment than Sendas Distribuidora. However, G Willi Food International is 1.29 times less risky than Sendas Distribuidora. It trades about 0.04 of its potential returns per unit of risk. Sendas Distribuidora SA is currently generating about -0.08 per unit of risk. If you would invest 1,307 in G Willi Food International on November 9, 2024 and sell it today you would earn a total of 433.00 from holding G Willi Food International or generate 33.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.75% |
| Values | Daily Returns |
G Willi Food International vs. Sendas Distribuidora SA
Performance |
| Timeline |
| G Willi Food |
| Sendas Distribuidora |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
G Willi and Sendas Distribuidora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Sendas Distribuidora
The main advantage of trading using opposite G Willi and Sendas Distribuidora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, Sendas Distribuidora 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 Sendas Distribuidora will offset losses from the drop in Sendas Distribuidora'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 |
| Sendas Distribuidora vs. Village Super Market | Sendas Distribuidora vs. Weis Markets | Sendas Distribuidora vs. Ingles Markets Incorporated | Sendas Distribuidora vs. Grocery Outlet Holding |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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