Correlation Between GWILLI FOOD and GREEN MINERALS

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

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

Diversification Opportunities for GWILLI FOOD and GREEN MINERALS

-0.94

Correlation Coefficient

GWILLI FOOD  GREEN MINERALS

Pay attention - limited upside

The 3 months correlation between GWILLI and GREEN is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and GREEN MINERALS NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREEN MINERALS NK and GWILLI FOOD 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 GWILLI FOOD are associated (or correlated) with GREEN MINERALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREEN MINERALS NK has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and GREEN MINERALS go up and down completely randomly.

Pair Corralation between GWILLI FOOD and GREEN MINERALS

Assuming the 90 days trading horizon GWILLI FOOD is expected to under-perform the GREEN MINERALS. But the stock apears to be less risky and, when comparing its historical volatility, GWILLI FOOD is 4.52 times less risky than GREEN MINERALS. The stock trades about -0.01 of its potential returns per unit of risk. The GREEN MINERALS NK is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  24.00  in GREEN MINERALS NK on October 25, 2024 and sell it today you would earn a total of  6.00  from holding GREEN MINERALS NK or generate 25.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	94.44%
Values	Daily Returns

GWILLI FOOD  vs.  GREEN MINERALS NK

GWILLI FOOD

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GWILLI FOOD are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, GWILLI FOOD exhibited solid returns over the last few months and may actually be approaching a breakup point.

GREEN MINERALS NK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GREEN MINERALS NK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with GWILLI FOOD and GREEN MINERALS

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

The idea behind GWILLI FOOD and GREEN MINERALS NK 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.