Correlation Between Nestle SA and WH Group
Can any of the company-specific risk be diversified away by investing in both Nestle SA and WH Group 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 Nestle SA and WH Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nestle SA and WH Group Limited, you can compare the effects of market volatilities on Nestle SA and WH Group 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 Nestle SA with a short position of WH Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nestle SA and WH Group.
Diversification Opportunities for Nestle SA and WH Group
Very weak diversification
The 3 months correlation between Nestle and WHGRF is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nestle SA and WH Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WH Group Limited and Nestle SA 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 Nestle SA are associated (or correlated) with WH Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WH Group Limited has no effect on the direction of Nestle SA i.e., Nestle SA and WH Group go up and down completely randomly.
Pair Corralation between Nestle SA and WH Group
If you would invest 60.00 in WH Group Limited on December 29, 2023 and sell it today you would earn a total of 0.00 from holding WH Group Limited or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Nestle SA vs. WH Group Limited
Performance |
Timeline |
Nestle SA |
WH Group Limited |
Nestle SA and WH Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nestle SA and WH Group
The main advantage of trading using opposite Nestle SA and WH Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nestle SA position performs unexpectedly, WH Group 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 WH Group will offset losses from the drop in WH Group's long position.Nestle SA vs. Kraft Heinz Co | Nestle SA vs. General Mills | Nestle SA vs. Danone PK | Nestle SA vs. McCormick Company Incorporated |
WH Group vs. Kraft Heinz Co | WH Group vs. General Mills | WH Group vs. Danone PK | WH Group vs. McCormick Company Incorporated |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |