Correlation Between Willamette Valley and Vintage Wine
Can any of the company-specific risk be diversified away by investing in both Willamette Valley and Vintage Wine 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 Vintage Wine 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 Vintage Wine Estates, you can compare the effects of market volatilities on Willamette Valley and Vintage Wine 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 Vintage Wine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willamette Valley and Vintage Wine.
Diversification Opportunities for Willamette Valley and Vintage Wine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Willamette and Vintage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Willamette Valley Vineyards and Vintage Wine Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vintage Wine Estates 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 Vintage Wine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vintage Wine Estates has no effect on the direction of Willamette Valley i.e., Willamette Valley and Vintage Wine go up and down completely randomly.
Pair Corralation between Willamette Valley and Vintage Wine
If you would invest (100.00) in Vintage Wine Estates on December 23, 2024 and sell it today you would earn a total of 100.00 from holding Vintage Wine Estates or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Willamette Valley Vineyards vs. Vintage Wine Estates
Performance |
| Timeline |
| Willamette Valley |
| Vintage Wine Estates |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Willamette Valley and Vintage Wine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willamette Valley and Vintage Wine
The main advantage of trading using opposite Willamette Valley and Vintage Wine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willamette Valley position performs unexpectedly, Vintage Wine 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 Vintage Wine will offset losses from the drop in Vintage Wine's long position.| Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Pernod Ricard SA | Willamette Valley vs. Brown Forman | Willamette Valley vs. Treasury Wine Estates |
| Vintage Wine vs. MGP Ingredients | Vintage Wine vs. Brown Forman | Vintage Wine vs. Diageo PLC ADR | Vintage Wine vs. Brown Forman |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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