Correlation Between G Willi and Consumer Products
Can any of the company-specific risk be diversified away by investing in both G Willi and Consumer Products 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 Consumer Products 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 Consumer Products Fund, you can compare the effects of market volatilities on G Willi and Consumer Products 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 Consumer Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Consumer Products.
Diversification Opportunities for G Willi and Consumer Products
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WILC and Consumer is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Consumer Products Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumer Products 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 Consumer Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumer Products has no effect on the direction of G Willi i.e., G Willi and Consumer Products go up and down completely randomly.
Pair Corralation between G Willi and Consumer Products
Given the investment horizon of 90 days G Willi Food International is expected to generate 7.06 times more return on investment than Consumer Products. However, G Willi is 7.06 times more volatile than Consumer Products Fund. It trades about 0.24 of its potential returns per unit of risk. Consumer Products Fund is currently generating about 0.1 per unit of risk. If you would invest 1,209 in G Willi Food International on August 27, 2024 and sell it today you would earn a total of 261.00 from holding G Willi Food International or generate 21.59% 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. Consumer Products Fund
Performance |
| Timeline |
| G Willi Food |
| Consumer Products |
G Willi and Consumer Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Consumer Products
The main advantage of trading using opposite G Willi and Consumer Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, Consumer Products 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 Consumer Products will offset losses from the drop in Consumer Products' 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 |
| Consumer Products vs. Kellanova | Consumer Products vs. Bunge Limited | Consumer Products vs. BJs Wholesale Club | Consumer Products vs. Colgate Palmolive |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |