Correlation Between Willy Food and Analyst IMS
Can any of the company-specific risk be diversified away by investing in both Willy Food and Analyst IMS 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 Willy Food and Analyst IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willy Food and Analyst IMS Investment, you can compare the effects of market volatilities on Willy Food and Analyst IMS 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 Willy Food with a short position of Analyst IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willy Food and Analyst IMS.
Diversification Opportunities for Willy Food and Analyst IMS
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Willy and Analyst is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Willy Food and Analyst IMS Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analyst IMS Investment and Willy Food 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 Willy Food are associated (or correlated) with Analyst IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analyst IMS Investment has no effect on the direction of Willy Food i.e., Willy Food and Analyst IMS go up and down completely randomly.
Pair Corralation between Willy Food and Analyst IMS
Assuming the 90 days trading horizon Willy Food is expected to under-perform the Analyst IMS. In addition to that, Willy Food is 2.45 times more volatile than Analyst IMS Investment. It trades about -0.1 of its total potential returns per unit of risk. Analyst IMS Investment is currently generating about 0.61 per unit of volatility. If you would invest 638,900 in Analyst IMS Investment on November 4, 2024 and sell it today you would earn a total of 61,100 from holding Analyst IMS Investment or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willy Food vs. Analyst IMS Investment
Performance |
| Timeline |
| Willy Food |
| Analyst IMS Investment |
Willy Food and Analyst IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willy Food and Analyst IMS
The main advantage of trading using opposite Willy Food and Analyst IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willy Food position performs unexpectedly, Analyst IMS 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 Analyst IMS will offset losses from the drop in Analyst IMS's long position.| Willy Food vs. Rami Levi | Willy Food vs. Neto ME Holdings | Willy Food vs. Shufersal | Willy Food vs. Strauss Group |
| Analyst IMS vs. Meitav Dash Investments | Analyst IMS vs. Payment Financial Technologies | Analyst IMS vs. Magic Software Enterprises | Analyst IMS vs. Azorim Investment Development |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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