Correlation Between WOOLWORTHS HLDGS and WOOLWORTHS

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

By analyzing existing cross correlation between WOOLWORTHS HLDGS and WOOLWORTHS, you can compare the effects of market volatilities on WOOLWORTHS HLDGS and WOOLWORTHS 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 WOOLWORTHS HLDGS with a short position of WOOLWORTHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of WOOLWORTHS HLDGS and WOOLWORTHS.

Diversification Opportunities for WOOLWORTHS HLDGS and WOOLWORTHS

0.0

Correlation Coefficient

WOOLWORTHS HLDGS  WOOLWORTHS

Pay attention - limited upside

The 3 months correlation between WOOLWORTHS and WOOLWORTHS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WOOLWORTHS HLDGS and WOOLWORTHS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WOOLWORTHS and WOOLWORTHS HLDGS 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 WOOLWORTHS HLDGS are associated (or correlated) with WOOLWORTHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WOOLWORTHS has no effect on the direction of WOOLWORTHS HLDGS i.e., WOOLWORTHS HLDGS and WOOLWORTHS go up and down completely randomly.

Pair Corralation between WOOLWORTHS HLDGS and WOOLWORTHS

If you would invest (100.00) in WOOLWORTHS HLDGS on October 7, 2024 and sell it today you would earn a total of  100.00  from holding WOOLWORTHS HLDGS or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

WOOLWORTHS HLDGS  vs.  WOOLWORTHS

WOOLWORTHS HLDGS

Risk-Adjusted Performance

0 of 100

Very Weak

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

WOOLWORTHS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WOOLWORTHS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with WOOLWORTHS HLDGS and WOOLWORTHS

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

The idea behind WOOLWORTHS HLDGS and WOOLWORTHS 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.