Correlation Between Top Wealth and G Willi

Can any of the company-specific risk be diversified away by investing in both Top Wealth and G Willi 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 Top Wealth and G Willi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Top Wealth Group and G Willi Food International, you can compare the effects of market volatilities on Top Wealth and G Willi 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 Top Wealth with a short position of G Willi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Top Wealth and G Willi.

Diversification Opportunities for Top Wealth and G Willi

-0.28

Correlation Coefficient

Top Wealth  G Willi

Very good diversification

The 3 months correlation between Top and WILC is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Top Wealth Group and G Willi Food International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Willi Food and Top Wealth 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 Top Wealth Group are associated (or correlated) with G Willi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Willi Food has no effect on the direction of Top Wealth i.e., Top Wealth and G Willi go up and down completely randomly.

Pair Corralation between Top Wealth and G Willi

Considering the 90-day investment horizon Top Wealth Group is expected to generate 4.06 times more return on investment than G Willi. However, Top Wealth is 4.06 times more volatile than G Willi Food International. It trades about 0.15 of its potential returns per unit of risk. G Willi Food International is currently generating about -0.15 per unit of risk. If you would invest  20.00  in Top Wealth Group on October 23, 2024 and sell it today you would earn a total of  3.00  from holding Top Wealth Group or generate 15.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Top Wealth Group  vs.  G Willi Food International

Top Wealth Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Top Wealth Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak 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.

G Willi Food

Risk-Adjusted Performance

14 of 100

Good

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

Pair Trading with Top Wealth and G Willi

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

The idea behind Top Wealth Group and G Willi Food International 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 Global Correlations module to find global opportunities by holding instruments from different markets.