Correlation Between G Willi and SpartanNash

Can any of the company-specific risk be diversified away by investing in both G Willi and SpartanNash 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 SpartanNash 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 SpartanNash Co, you can compare the effects of market volatilities on G Willi and SpartanNash 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 SpartanNash. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and SpartanNash.

Diversification Opportunities for G Willi and SpartanNash

0.41

Correlation Coefficient

G Willi  SpartanNash

Very weak diversification

The 3 months correlation between WILC and SpartanNash is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and SpartanNash Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpartanNash 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 SpartanNash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpartanNash has no effect on the direction of G Willi i.e., G Willi and SpartanNash go up and down completely randomly.

Pair Corralation between G Willi and SpartanNash

Given the investment horizon of 90 days G Willi Food International is expected to under-perform the SpartanNash. But the stock apears to be less risky and, when comparing its historical volatility, G Willi Food International is 1.17 times less risky than SpartanNash. The stock trades about -0.04 of its potential returns per unit of risk. The SpartanNash Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  1,783  in SpartanNash Co on December 30, 2024 and sell it today you would earn a total of  220.00  from holding SpartanNash Co or generate 12.34% return on investment over 90 days.

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

G Willi Food International  vs.  SpartanNash Co

G Willi Food

Risk-Adjusted Performance

Very Weak

Over the last 90 days G Willi Food International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, G Willi is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

SpartanNash

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SpartanNash Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, SpartanNash displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with G Willi and SpartanNash

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

The idea behind G Willi Food International and SpartanNash Co 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.

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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.