Correlation Between G Willi and Eastside Distilling
Can any of the company-specific risk be diversified away by investing in both G Willi and Eastside Distilling 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 Eastside Distilling 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 Eastside Distilling, you can compare the effects of market volatilities on G Willi and Eastside Distilling 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 Eastside Distilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Eastside Distilling.
Diversification Opportunities for G Willi and Eastside Distilling
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WILC and Eastside is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Eastside Distilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastside Distilling 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 Eastside Distilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastside Distilling has no effect on the direction of G Willi i.e., G Willi and Eastside Distilling go up and down completely randomly.
Pair Corralation between G Willi and Eastside Distilling
Given the investment horizon of 90 days G Willi Food International is expected to generate 0.72 times more return on investment than Eastside Distilling. However, G Willi Food International is 1.39 times less risky than Eastside Distilling. It trades about 0.21 of its potential returns per unit of risk. Eastside Distilling is currently generating about 0.12 per unit of risk. If you would invest 1,215 in G Willi Food International on August 30, 2024 and sell it today you would earn a total of 240.00 from holding G Willi Food International or generate 19.75% 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. Eastside Distilling
Performance |
| Timeline |
| G Willi Food |
| Eastside Distilling |
G Willi and Eastside Distilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Eastside Distilling
The main advantage of trading using opposite G Willi and Eastside Distilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, Eastside Distilling 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 Eastside Distilling will offset losses from the drop in Eastside Distilling'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 |
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 Directory module to find actively traded commodities issued by global exchanges.
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