Correlation Between G Willi and Willamette Valley
Can any of the company-specific risk be diversified away by investing in both G Willi and Willamette Valley 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 Willamette Valley 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 Willamette Valley Vineyards, you can compare the effects of market volatilities on G Willi and Willamette Valley 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 Willamette Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Willamette Valley.
Diversification Opportunities for G Willi and Willamette Valley
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WILC and Willamette is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Willamette Valley Vineyards in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Willamette Valley 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 Willamette Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Willamette Valley has no effect on the direction of G Willi i.e., G Willi and Willamette Valley go up and down completely randomly.
Pair Corralation between G Willi and Willamette Valley
Given the investment horizon of 90 days G Willi Food International is expected to generate 2.92 times more return on investment than Willamette Valley. However, G Willi is 2.92 times more volatile than Willamette Valley Vineyards. It trades about 0.24 of its potential returns per unit of risk. Willamette Valley Vineyards is currently generating about -0.03 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Willi Food International vs. Willamette Valley Vineyards
Performance |
| Timeline |
| G Willi Food |
| Willamette Valley |
G Willi and Willamette Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Willamette Valley
The main advantage of trading using opposite G Willi and Willamette Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, Willamette Valley 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 Willamette Valley will offset losses from the drop in Willamette Valley'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 |
| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |