Correlation Between LG Gerd and WisdomTree Wheat
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By analyzing existing cross correlation between LG Gerd Kommer and WisdomTree Wheat 2x, you can compare the effects of market volatilities on LG Gerd and WisdomTree Wheat 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 LG Gerd with a short position of WisdomTree Wheat. Check out your portfolio center. Please also check ongoing floating volatility patterns of LG Gerd and WisdomTree Wheat.
Diversification Opportunities for LG Gerd and WisdomTree Wheat
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GERD and WisdomTree is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding LG Gerd Kommer and WisdomTree Wheat 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Wheat and LG Gerd 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 LG Gerd Kommer are associated (or correlated) with WisdomTree Wheat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Wheat has no effect on the direction of LG Gerd i.e., LG Gerd and WisdomTree Wheat go up and down completely randomly.
Pair Corralation between LG Gerd and WisdomTree Wheat
Assuming the 90 days trading horizon LG Gerd Kommer is expected to generate 0.18 times more return on investment than WisdomTree Wheat. However, LG Gerd Kommer is 5.62 times less risky than WisdomTree Wheat. It trades about 0.1 of its potential returns per unit of risk. WisdomTree Wheat 2x is currently generating about -0.06 per unit of risk. If you would invest 920.00 in LG Gerd Kommer on September 23, 2024 and sell it today you would earn a total of 266.00 from holding LG Gerd Kommer or generate 28.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 77.76% |
Values | Daily Returns |
LG Gerd Kommer vs. WisdomTree Wheat 2x
Performance |
Timeline |
LG Gerd Kommer |
WisdomTree Wheat |
LG Gerd and WisdomTree Wheat Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LG Gerd and WisdomTree Wheat
The main advantage of trading using opposite LG Gerd and WisdomTree Wheat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LG Gerd position performs unexpectedly, WisdomTree Wheat 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 WisdomTree Wheat will offset losses from the drop in WisdomTree Wheat's long position.LG Gerd vs. iShares Govt Bond | LG Gerd vs. Amundi MSCI Europe | LG Gerd vs. iShares Global AAA AA | LG Gerd vs. iShares Smart City |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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