Correlation Between Chefs Warehouse and G Willi

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

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

Diversification Opportunities for Chefs Warehouse and G Willi

0.28

Correlation Coefficient

Chefs Warehouse  G Willi

Modest diversification

The 3 months correlation between Chefs and WILC is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding The Chefs Warehouse 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 Chefs Warehouse 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 The Chefs Warehouse 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 Chefs Warehouse i.e., Chefs Warehouse and G Willi go up and down completely randomly.

Pair Corralation between Chefs Warehouse and G Willi

Given the investment horizon of 90 days The Chefs Warehouse is expected to under-perform the G Willi. But the stock apears to be less risky and, when comparing its historical volatility, The Chefs Warehouse is 1.04 times less risky than G Willi. The stock trades about -0.01 of its potential returns per unit of risk. The G Willi Food International is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  1,561  in G Willi Food International on May 21, 2025 and sell it today you would earn a total of  627.00  from holding G Willi Food International or generate 40.17% return on investment over 90 days.

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

The Chefs Warehouse  vs.  G Willi Food International

Chefs Warehouse

Risk-Adjusted Performance

Weakest

Over the last 90 days The Chefs Warehouse has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Chefs Warehouse is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

G Willi Food

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in G Willi Food International are ranked lower than 19 (%) 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 Chefs Warehouse and G Willi

The main advantage of trading using opposite Chefs Warehouse and G Willi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chefs Warehouse 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 The Chefs Warehouse 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.