Correlation Between GWILLI FOOD and CSSC Offshore

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Can any of the company-specific risk be diversified away by investing in both GWILLI FOOD and CSSC Offshore 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 CSSC Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GWILLI FOOD and CSSC Offshore Marine, you can compare the effects of market volatilities on GWILLI FOOD and CSSC Offshore 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 CSSC Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWILLI FOOD and CSSC Offshore.

Diversification Opportunities for GWILLI FOOD and CSSC Offshore

-0.72
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GWILLI and CSSC is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and CSSC Offshore Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSSC Offshore Marine 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 CSSC Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSSC Offshore Marine has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and CSSC Offshore go up and down completely randomly.

Pair Corralation between GWILLI FOOD and CSSC Offshore

Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 0.8 times more return on investment than CSSC Offshore. However, GWILLI FOOD is 1.25 times less risky than CSSC Offshore. It trades about 0.2 of its potential returns per unit of risk. CSSC Offshore Marine is currently generating about 0.01 per unit of risk. If you would invest  1,450  in GWILLI FOOD on October 10, 2024 and sell it today you would earn a total of  100.00  from holding GWILLI FOOD or generate 6.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

GWILLI FOOD  vs.  CSSC Offshore Marine

 Performance 
       Timeline  
GWILLI FOOD 

Risk-Adjusted Performance

17 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in GWILLI FOOD are ranked lower than 17 (%) 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.
CSSC Offshore Marine 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days CSSC Offshore Marine has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

GWILLI FOOD and CSSC Offshore Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GWILLI FOOD and CSSC Offshore

The main advantage of trading using opposite GWILLI FOOD and CSSC Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWILLI FOOD position performs unexpectedly, CSSC Offshore 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 CSSC Offshore will offset losses from the drop in CSSC Offshore's long position.
The idea behind GWILLI FOOD and CSSC Offshore Marine 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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