Correlation Between G Willi and Genuine Parts
Can any of the company-specific risk be diversified away by investing in both G Willi and Genuine Parts 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 Genuine Parts 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 Genuine Parts Co, you can compare the effects of market volatilities on G Willi and Genuine Parts 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 Genuine Parts. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Genuine Parts.
Diversification Opportunities for G Willi and Genuine Parts
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WILC and Genuine is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Genuine Parts Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genuine Parts 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 Genuine Parts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genuine Parts has no effect on the direction of G Willi i.e., G Willi and Genuine Parts go up and down completely randomly.
Pair Corralation between G Willi and Genuine Parts
Given the investment horizon of 90 days G Willi Food International is expected to generate 0.95 times more return on investment than Genuine Parts. However, G Willi Food International is 1.05 times less risky than Genuine Parts. It trades about 0.25 of its potential returns per unit of risk. Genuine Parts Co is currently generating about -0.03 per unit of risk. If you would invest 1,042 in G Willi Food International on September 12, 2024 and sell it today you would earn a total of 578.00 from holding G Willi Food International or generate 55.47% 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. Genuine Parts Co
Performance |
| Timeline |
| G Willi Food |
| Genuine Parts |
G Willi and Genuine Parts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Genuine Parts
The main advantage of trading using opposite G Willi and Genuine Parts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, Genuine Parts 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 Genuine Parts will offset losses from the drop in Genuine Parts' long position.| G Willi vs. Costco Wholesale Corp | G Willi vs. BJs Wholesale Club | G Willi vs. Dollar Tree | G Willi vs. Dollar General |
| Genuine Parts vs. Steven Madden | Genuine Parts vs. Vera Bradley | Genuine Parts vs. Caleres | Genuine Parts vs. Wolverine World Wide |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |