Correlation Between GWILLI FOOD and NEWELL RUBBERMAID

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

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

Diversification Opportunities for GWILLI FOOD and NEWELL RUBBERMAID

0.33

Correlation Coefficient

GWILLI FOOD  NEWELL RUBBERMAID

Weak diversification

The 3 months correlation between GWILLI and NEWELL is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding GWILLI FOOD and NEWELL RUBBERMAID in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWELL RUBBERMAID and GWILLI FOOD 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 GWILLI FOOD are associated (or correlated) with NEWELL RUBBERMAID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWELL RUBBERMAID has no effect on the direction of GWILLI FOOD i.e., GWILLI FOOD and NEWELL RUBBERMAID go up and down completely randomly.

Pair Corralation between GWILLI FOOD and NEWELL RUBBERMAID

Assuming the 90 days trading horizon GWILLI FOOD is expected to generate 0.63 times more return on investment than NEWELL RUBBERMAID. However, GWILLI FOOD is 1.58 times less risky than NEWELL RUBBERMAID. It trades about 0.17 of its potential returns per unit of risk. NEWELL RUBBERMAID is currently generating about 0.09 per unit of risk. If you would invest  1,380  in GWILLI FOOD on April 25, 2025 and sell it today you would earn a total of  310.00  from holding GWILLI FOOD or generate 22.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	92.06%
Values	Daily Returns

GWILLI FOOD  vs.  NEWELL RUBBERMAID

GWILLI FOOD

Risk-Adjusted Performance

Good

Over the last 90 days GWILLI FOOD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather unsteady basic indicators, GWILLI FOOD exhibited solid returns over the last few months and may actually be approaching a breakup point.

NEWELL RUBBERMAID

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in NEWELL RUBBERMAID are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, NEWELL RUBBERMAID unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GWILLI FOOD and NEWELL RUBBERMAID

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

The idea behind GWILLI FOOD and NEWELL RUBBERMAID 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.