Correlation Between WT OFFSHORE and VIRGIN WINES
Can any of the company-specific risk be diversified away by investing in both WT OFFSHORE and VIRGIN WINES 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 WT OFFSHORE and VIRGIN WINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WT OFFSHORE and VIRGIN WINES UK, you can compare the effects of market volatilities on WT OFFSHORE and VIRGIN WINES 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 WT OFFSHORE with a short position of VIRGIN WINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of WT OFFSHORE and VIRGIN WINES.
Diversification Opportunities for WT OFFSHORE and VIRGIN WINES
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UWV and VIRGIN is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding WT OFFSHORE and VIRGIN WINES UK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIRGIN WINES UK and WT OFFSHORE 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 WT OFFSHORE are associated (or correlated) with VIRGIN WINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIRGIN WINES UK has no effect on the direction of WT OFFSHORE i.e., WT OFFSHORE and VIRGIN WINES go up and down completely randomly.
Pair Corralation between WT OFFSHORE and VIRGIN WINES
Assuming the 90 days trading horizon WT OFFSHORE is expected to generate 1.53 times more return on investment than VIRGIN WINES. However, WT OFFSHORE is 1.53 times more volatile than VIRGIN WINES UK. It trades about 0.06 of its potential returns per unit of risk. VIRGIN WINES UK is currently generating about -0.21 per unit of risk. If you would invest 146.00 in WT OFFSHORE on August 19, 2025 and sell it today you would earn a total of 17.00 from holding WT OFFSHORE or generate 11.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.48% |
| Values | Daily Returns |
WT OFFSHORE vs. VIRGIN WINES UK
Performance |
| Timeline |
| WT OFFSHORE |
| VIRGIN WINES UK |
WT OFFSHORE and VIRGIN WINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WT OFFSHORE and VIRGIN WINES
The main advantage of trading using opposite WT OFFSHORE and VIRGIN WINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WT OFFSHORE position performs unexpectedly, VIRGIN WINES 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 VIRGIN WINES will offset losses from the drop in VIRGIN WINES's long position.| WT OFFSHORE vs. Playmates Toys Limited | WT OFFSHORE vs. SLR Investment Corp | WT OFFSHORE vs. QUBICGAMES SA ZY | WT OFFSHORE vs. VIVA WINE GROUP |
| VIRGIN WINES vs. NEW MILLENNIUM IRON | VIRGIN WINES vs. Nippon Steel | VIRGIN WINES vs. ANGANG STEEL H | VIRGIN WINES vs. Tianjin Capital Environmental |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| CEOs Directory Screen CEOs from public companies around the world |