Correlation Between GWILLI FOOD and CSSC Offshore
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GWILLI FOOD vs. CSSC Offshore Marine
Performance |
Timeline |
GWILLI FOOD |
CSSC Offshore Marine |
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.GWILLI FOOD vs. Transport International Holdings | GWILLI FOOD vs. Ryanair Holdings plc | GWILLI FOOD vs. SEALED AIR | GWILLI FOOD vs. SOGECLAIR SA INH |
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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 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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