Correlation Between GWILLI FOOD and GAMESTOP
Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and GAMESTOP 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 GAMESTOP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and GAMESTOP, you can compare the effects of market volatilities on GWILLI FOOD and GAMESTOP 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 GAMESTOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and GAMESTOP.
Diversification Opportunities for GWILLI FOOD and GAMESTOP
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GWILLI and GAMESTOP is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and GAMESTOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMESTOP 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 GAMESTOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMESTOP has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and GAMESTOP go up and down completely randomly.
Pair Corralation between GWILLI FOOD and GAMESTOP
Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 0.6 times more return on investment than GAMESTOP. However, GWILLI FOOD is 1.67 times less risky than GAMESTOP. It trades about -0.04 of its potential returns per unit of risk. GAMESTOP is currently generating about -0.12 per unit of risk. If you would invest 1,590 in GWILLI FOOD on December 23, 2024 and sell it today you would lose (90.00) from holding GWILLI FOOD or give up 5.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
GWILLI FOOD vs. GAMESTOP
Performance |
Timeline |
GWILLI FOOD |
GAMESTOP |
GWILLI FOOD and GAMESTOP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GWILLI FOOD and GAMESTOP
The main advantage of trading using opposite GWILLI FOOD and GAMESTOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, GAMESTOP 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 GAMESTOP will offset losses from the drop in GAMESTOP's long position.GWILLI FOOD vs. SOFI TECHNOLOGIES | GWILLI FOOD vs. Treasury Wine Estates | GWILLI FOOD vs. Media and Games | GWILLI FOOD vs. Allegheny Technologies Incorporated |
GAMESTOP vs. United Utilities Group | GAMESTOP vs. Singapore Airlines Limited | GAMESTOP vs. United Airlines Holdings | GAMESTOP vs. Aegean Airlines SA |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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