Correlation Between Willamette Valley and GobiMin
Can any of the company-specific risk be diversified away by investing in both Willamette Valley and GobiMin 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 Willamette Valley and GobiMin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willamette Valley Vineyards and GobiMin, you can compare the effects of market volatilities on Willamette Valley and GobiMin 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 Willamette Valley with a short position of GobiMin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willamette Valley and GobiMin.
Diversification Opportunities for Willamette Valley and GobiMin
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Willamette and GobiMin is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Willamette Valley Vineyards and GobiMin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GobiMin and Willamette Valley 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 Willamette Valley Vineyards are associated (or correlated) with GobiMin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GobiMin has no effect on the direction of Willamette Valley i.e., Willamette Valley and GobiMin go up and down completely randomly.
Pair Corralation between Willamette Valley and GobiMin
If you would invest 127.00 in GobiMin on August 31, 2024 and sell it today you would earn a total of 0.00 from holding GobiMin or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Willamette Valley Vineyards vs. GobiMin
Performance |
| Timeline |
| Willamette Valley |
| GobiMin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Willamette Valley and GobiMin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willamette Valley and GobiMin
The main advantage of trading using opposite Willamette Valley and GobiMin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willamette Valley position performs unexpectedly, GobiMin 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 GobiMin will offset losses from the drop in GobiMin's long position.| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Iconic Brands | Willamette Valley vs. Naked Wines plc |
| GobiMin vs. Pintec Technology Holdings | GobiMin vs. Willamette Valley Vineyards | GobiMin vs. Molson Coors Brewing | GobiMin vs. AmTrust Financial Services |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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