Correlation Between George Weston and George Weston
Can any of the company-specific risk be diversified away by investing in both George Weston and George Weston 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 George Weston and George Weston into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between George Weston Prf and George Weston 520, you can compare the effects of market volatilities on George Weston and George Weston 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 George Weston with a short position of George Weston. Check out your portfolio center. Please also check ongoing floating volatility patterns of George Weston and George Weston.
Diversification Opportunities for George Weston and George Weston
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between George and George is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding George Weston Prf and George Weston 520 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on George Weston 520 and George Weston 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 George Weston Prf are associated (or correlated) with George Weston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of George Weston 520 has no effect on the direction of George Weston i.e., George Weston and George Weston go up and down completely randomly.
Pair Corralation between George Weston and George Weston
Assuming the 90 days trading horizon George Weston is expected to generate 1.07 times less return on investment than George Weston. But when comparing it to its historical volatility, George Weston Prf is 1.58 times less risky than George Weston. It trades about 0.11 of its potential returns per unit of risk. George Weston 520 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,219 in George Weston 520 on October 25, 2024 and sell it today you would earn a total of 11.00 from holding George Weston 520 or generate 0.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.0% |
Values | Daily Returns |
George Weston Prf vs. George Weston 520
Performance |
Timeline |
George Weston Prf |
George Weston 520 |
George Weston and George Weston Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with George Weston and George Weston
The main advantage of trading using opposite George Weston and George Weston positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if George Weston position performs unexpectedly, George Weston 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 George Weston will offset losses from the drop in George Weston's long position.George Weston vs. George Weston 520 | George Weston vs. George Weston Ser | George Weston vs. George Weston 475 | George Weston vs. Fortis 1St Cum |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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