Correlation Between G Willi and AiXin Life
Can any of the company-specific risk be diversified away by investing in both G Willi and AiXin Life 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 G Willi and AiXin Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Willi Food International and AiXin Life International, you can compare the effects of market volatilities on G Willi and AiXin Life 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 G Willi with a short position of AiXin Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and AiXin Life.
Diversification Opportunities for G Willi and AiXin Life
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WILC and AiXin is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and AiXin Life International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AiXin Life International and G Willi 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 G Willi Food International are associated (or correlated) with AiXin Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AiXin Life International has no effect on the direction of G Willi i.e., G Willi and AiXin Life go up and down completely randomly.
Pair Corralation between G Willi and AiXin Life
Given the investment horizon of 90 days G Willi is expected to generate 163.64 times less return on investment than AiXin Life. But when comparing it to its historical volatility, G Willi Food International is 179.21 times less risky than AiXin Life. It trades about 0.22 of its potential returns per unit of risk. AiXin Life International is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2.00 in AiXin Life International on December 1, 2024 and sell it today you would earn a total of 2.20 from holding AiXin Life International or generate 110.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
G Willi Food International vs. AiXin Life International
Performance |
Timeline |
G Willi Food |
AiXin Life International |
G Willi and AiXin Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with G Willi and AiXin Life
The main advantage of trading using opposite G Willi and AiXin Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi position performs unexpectedly, AiXin Life 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 AiXin Life will offset losses from the drop in AiXin Life's long position.G Willi vs. Hf Foods Group | G Willi vs. Innovative Food Hldg | G Willi vs. Calavo Growers | G Willi vs. The Chefs Warehouse |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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