Correlation Between Wilh Wilhelmsen and Global Ship
Can any of the company-specific risk be diversified away by investing in both Wilh Wilhelmsen and Global Ship 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 Wilh Wilhelmsen and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilh Wilhelmsen Holding and Global Ship Lease, you can compare the effects of market volatilities on Wilh Wilhelmsen and Global Ship 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 Wilh Wilhelmsen with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilh Wilhelmsen and Global Ship.
Diversification Opportunities for Wilh Wilhelmsen and Global Ship
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wilh and Global is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Wilh Wilhelmsen Holding and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and Wilh Wilhelmsen 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 Wilh Wilhelmsen Holding are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Wilh Wilhelmsen i.e., Wilh Wilhelmsen and Global Ship go up and down completely randomly.
Pair Corralation between Wilh Wilhelmsen and Global Ship
Assuming the 90 days trading horizon Wilh Wilhelmsen Holding is expected to generate 3.65 times more return on investment than Global Ship. However, Wilh Wilhelmsen is 3.65 times more volatile than Global Ship Lease. It trades about 0.26 of its potential returns per unit of risk. Global Ship Lease is currently generating about -0.13 per unit of risk. If you would invest 2,365 in Wilh Wilhelmsen Holding on September 3, 2024 and sell it today you would earn a total of 905.00 from holding Wilh Wilhelmsen Holding or generate 38.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wilh Wilhelmsen Holding vs. Global Ship Lease
Performance |
| Timeline |
| Wilh Wilhelmsen Holding |
| Global Ship Lease |
Wilh Wilhelmsen and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilh Wilhelmsen and Global Ship
The main advantage of trading using opposite Wilh Wilhelmsen and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilh Wilhelmsen position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| Wilh Wilhelmsen vs. NISSIN FOODS HLDGS | Wilh Wilhelmsen vs. TYSON FOODS A | Wilh Wilhelmsen vs. Tyson Foods | Wilh Wilhelmsen vs. PREMIER FOODS |
| Global Ship vs. BW LPG Limited | Global Ship vs. Wilh Wilhelmsen Holding | Global Ship vs. Superior Plus Corp | Global Ship vs. NMI Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |