Correlation Between G Willi and SpartanNash
Can any of the company-specific risk be diversified away by investing in both G Willi and SpartanNash 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 SpartanNash 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 SpartanNash Co, you can compare the effects of market volatilities on G Willi and SpartanNash 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 SpartanNash. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and SpartanNash.
Diversification Opportunities for G Willi and SpartanNash
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WILC and SpartanNash is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and SpartanNash Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpartanNash 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 SpartanNash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpartanNash has no effect on the direction of G Willi i.e., G Willi and SpartanNash go up and down completely randomly.
Pair Corralation between G Willi and SpartanNash
Given the investment horizon of 90 days G Willi Food International is expected to generate 1.41 times more return on investment than SpartanNash. However, G Willi is 1.41 times more volatile than SpartanNash Co. It trades about 0.19 of its potential returns per unit of risk. SpartanNash Co is currently generating about -0.18 per unit of risk. If you would invest 1,191 in G Willi Food International on August 24, 2024 and sell it today you would earn a total of 209.00 from holding G Willi Food International or generate 17.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
G Willi Food International vs. SpartanNash Co
Performance |
| Timeline |
| G Willi Food |
| SpartanNash |
G Willi and SpartanNash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and SpartanNash
The main advantage of trading using opposite G Willi and SpartanNash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, SpartanNash 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 SpartanNash will offset losses from the drop in SpartanNash's long position.| G Willi vs. Innovative Food Hldg | G Willi vs. Calavo Growers | G Willi vs. The Chefs Warehouse | G Willi vs. AMCON Distributing |
| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
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 CEOs Directory module to screen CEOs from public companies around the world.
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