Correlation Between EVS Broadcast and WIMFARM SA
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and WIMFARM SA 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 EVS Broadcast and WIMFARM SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and WIMFARM SA EO, you can compare the effects of market volatilities on EVS Broadcast and WIMFARM SA 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 EVS Broadcast with a short position of WIMFARM SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and WIMFARM SA.
Diversification Opportunities for EVS Broadcast and WIMFARM SA
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between EVS and WIMFARM is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and WIMFARM SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIMFARM SA EO and EVS Broadcast 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 EVS Broadcast Equipment are associated (or correlated) with WIMFARM SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIMFARM SA EO has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and WIMFARM SA go up and down completely randomly.
Pair Corralation between EVS Broadcast and WIMFARM SA
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 0.94 times more return on investment than WIMFARM SA. However, EVS Broadcast Equipment is 1.06 times less risky than WIMFARM SA. It trades about 0.06 of its potential returns per unit of risk. WIMFARM SA EO is currently generating about -0.21 per unit of risk. If you would invest 2,770 in EVS Broadcast Equipment on September 1, 2024 and sell it today you would earn a total of 45.00 from holding EVS Broadcast Equipment or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. WIMFARM SA EO
Performance |
| Timeline |
| EVS Broadcast Equipment |
| WIMFARM SA EO |
EVS Broadcast and WIMFARM SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and WIMFARM SA
The main advantage of trading using opposite EVS Broadcast and WIMFARM SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, WIMFARM SA 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 WIMFARM SA will offset losses from the drop in WIMFARM SA's long position.| EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc |
| WIMFARM SA vs. UPDATE SOFTWARE | WIMFARM SA vs. XLMedia PLC | WIMFARM SA vs. GigaMedia | WIMFARM SA vs. FUYO GENERAL LEASE |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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