Correlation Between WESTLIFE FOODWORLD and TRAVEL FOOD

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both WESTLIFE FOODWORLD and TRAVEL FOOD 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 WESTLIFE FOODWORLD and TRAVEL FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESTLIFE FOODWORLD LIMITED and TRAVEL FOOD SERVICES, you can compare the effects of market volatilities on WESTLIFE FOODWORLD and TRAVEL FOOD 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 WESTLIFE FOODWORLD with a short position of TRAVEL FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESTLIFE FOODWORLD and TRAVEL FOOD.

Diversification Opportunities for WESTLIFE FOODWORLD and TRAVEL FOOD

-0.3
  Correlation Coefficient

Very good diversification

The 3 months correlation between WESTLIFE and TRAVEL is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding WESTLIFE FOODWORLD LIMITED and TRAVEL FOOD SERVICES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVEL FOOD SERVICES and WESTLIFE FOODWORLD 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 WESTLIFE FOODWORLD LIMITED are associated (or correlated) with TRAVEL FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVEL FOOD SERVICES has no effect on the direction of WESTLIFE FOODWORLD i.e., WESTLIFE FOODWORLD and TRAVEL FOOD go up and down completely randomly.

Pair Corralation between WESTLIFE FOODWORLD and TRAVEL FOOD

Assuming the 90 days trading horizon WESTLIFE FOODWORLD LIMITED is expected to under-perform the TRAVEL FOOD. In addition to that, WESTLIFE FOODWORLD is 1.51 times more volatile than TRAVEL FOOD SERVICES. It trades about -0.06 of its total potential returns per unit of risk. TRAVEL FOOD SERVICES is currently generating about 0.22 per unit of volatility. If you would invest  131,480  in TRAVEL FOOD SERVICES on September 2, 2025 and sell it today you would earn a total of  6,440  from holding TRAVEL FOOD SERVICES or generate 4.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

WESTLIFE FOODWORLD LIMITED  vs.  TRAVEL FOOD SERVICES

 Performance 
       Timeline  
WESTLIFE FOODWORLD 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days WESTLIFE FOODWORLD LIMITED has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
TRAVEL FOOD SERVICES 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in TRAVEL FOOD SERVICES are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, TRAVEL FOOD may actually be approaching a critical reversion point that can send shares even higher in January 2026.

WESTLIFE FOODWORLD and TRAVEL FOOD Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WESTLIFE FOODWORLD and TRAVEL FOOD

The main advantage of trading using opposite WESTLIFE FOODWORLD and TRAVEL FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESTLIFE FOODWORLD position performs unexpectedly, TRAVEL FOOD 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 TRAVEL FOOD will offset losses from the drop in TRAVEL FOOD's long position.
The idea behind WESTLIFE FOODWORLD LIMITED and TRAVEL FOOD SERVICES 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.
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

Other Complementary Tools

Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories