Correlation Between Willy Food and G Willi
Can any of the company-specific risk be diversified away by investing in both Willy Food and G Willi 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 G Willi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willy Food and G Willi Food International, you can compare the effects of market volatilities on Willy Food and G Willi 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 G Willi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willy Food and G Willi.
Diversification Opportunities for Willy Food and G Willi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Willy and WILC is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Willy Food and G Willi Food International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Willi Food 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 G Willi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Willi Food has no effect on the direction of Willy Food i.e., Willy Food and G Willi go up and down completely randomly.
Pair Corralation between Willy Food and G Willi
Assuming the 90 days trading horizon Willy Food is expected to generate 1.03 times more return on investment than G Willi. However, Willy Food is 1.03 times more volatile than G Willi Food International. It trades about 0.34 of its potential returns per unit of risk. G Willi Food International is currently generating about 0.31 per unit of risk. If you would invest 204,300 in Willy Food on September 1, 2024 and sell it today you would earn a total of 41,700 from holding Willy Food or generate 20.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willy Food vs. G Willi Food International
Performance |
| Timeline |
| Willy Food |
| G Willi Food |
Willy Food and G Willi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willy Food and G Willi
The main advantage of trading using opposite Willy Food and G Willi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willy Food position performs unexpectedly, G Willi 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 G Willi will offset losses from the drop in G Willi's long position.| Willy Food vs. Kerur Holdings | Willy Food vs. Sano Brunos Enterprises | Willy Food vs. Al Bad Massuot Yitzhak |
| G Willi vs. Retailors | G Willi vs. Meitav Trade Inv | G Willi vs. Technoplus Ventures | G Willi vs. Abra Information Technologies |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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