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 0.64. 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
Given the investment horizon of 90 days G Willi Food International is expected to generate 4.32 times more return on investment than Dow Jones. However, G Willi is 4.32 times more volatile than Dow Jones Industrial. It trades about 0.26 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of risk. If you would invest 1,150 in G Willi Food International on August 25, 2024 and sell it today you would earn a total of 285.00 from holding G Willi Food International or generate 24.78% 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. 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. Innovative Food Hldg | G Willi vs. Calavo Growers | G Willi vs. The Chefs Warehouse | G Willi vs. AMCON Distributing |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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