Correlation Between AURELIUS Equity and GWILLI FOOD

Can any of the company-specific risk be diversified away by investing in both AURELIUS Equity and GWILLI FOOD 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 AURELIUS Equity and GWILLI FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AURELIUS Equity Opportunities and GWILLI FOOD, you can compare the effects of market volatilities on AURELIUS Equity and GWILLI FOOD 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 AURELIUS Equity with a short position of GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of AURELIUS Equity and GWILLI FOOD.

Diversification Opportunities for AURELIUS Equity and GWILLI FOOD

0.68

Correlation Coefficient

AURELIUS Equity  GWILLI FOOD

Poor diversification

The 3 months correlation between AURELIUS and GWILLI is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding AURELIUS Equity Opportunities and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD and AURELIUS Equity 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 AURELIUS Equity Opportunities are associated (or correlated) with GWILLI FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWILLI FOOD has no effect on the direction of AURELIUS Equity i.e., AURELIUS Equity and GWILLI FOOD go up and down completely randomly.

Pair Corralation between AURELIUS Equity and GWILLI FOOD

Assuming the 90 days trading horizon AURELIUS Equity Opportunities is expected to generate 12.99 times more return on investment than GWILLI FOOD. However, AURELIUS Equity is 12.99 times more volatile than GWILLI FOOD. It trades about 0.09 of its potential returns per unit of risk. GWILLI FOOD is currently generating about 0.16 per unit of risk. If you would invest  1,324  in AURELIUS Equity Opportunities on October 8, 2024 and sell it today you would earn a total of  6,836  from holding AURELIUS Equity Opportunities or generate 516.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.19%
Values	Daily Returns

AURELIUS Equity Opportunities  vs.  GWILLI FOOD

AURELIUS Equity Oppo

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days AURELIUS Equity Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively fragile basic indicators, AURELIUS Equity unveiled solid returns over the last few months and may actually be approaching a breakup point.

GWILLI FOOD

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GWILLI FOOD are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, GWILLI FOOD exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AURELIUS Equity and GWILLI FOOD

The main advantage of trading using opposite AURELIUS Equity and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AURELIUS Equity position performs unexpectedly, GWILLI FOOD 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 GWILLI FOOD will offset losses from the drop in GWILLI FOOD's long position.

The idea behind AURELIUS Equity Opportunities and GWILLI FOOD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.