Correlation Between WIMFARM SA and CN MODERN
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and CN MODERN 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 WIMFARM SA and CN MODERN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIMFARM SA EO and CN MODERN DAIRY, you can compare the effects of market volatilities on WIMFARM SA and CN MODERN 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 WIMFARM SA with a short position of CN MODERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and CN MODERN.
Diversification Opportunities for WIMFARM SA and CN MODERN
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WIMFARM and 07M is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and CN MODERN DAIRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN MODERN DAIRY and WIMFARM SA 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 WIMFARM SA EO are associated (or correlated) with CN MODERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN MODERN DAIRY has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and CN MODERN go up and down completely randomly.
Pair Corralation between WIMFARM SA and CN MODERN
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 1.1 times more return on investment than CN MODERN. However, WIMFARM SA is 1.1 times more volatile than CN MODERN DAIRY. It trades about 0.08 of its potential returns per unit of risk. CN MODERN DAIRY is currently generating about 0.01 per unit of risk. If you would invest 344.00 in WIMFARM SA EO on October 10, 2024 and sell it today you would earn a total of 39.00 from holding WIMFARM SA EO or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. CN MODERN DAIRY
Performance |
| Timeline |
| WIMFARM SA EO |
| CN MODERN DAIRY |
WIMFARM SA and CN MODERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and CN MODERN
The main advantage of trading using opposite WIMFARM SA and CN MODERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, CN MODERN 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 CN MODERN will offset losses from the drop in CN MODERN's long position.| WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB | WIMFARM SA vs. Talanx AG |
| CN MODERN vs. ALTAIR RES INC | CN MODERN vs. The Hanover Insurance | CN MODERN vs. Direct Line Insurance | CN MODERN vs. REVO INSURANCE SPA |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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