Correlation Between WIMFARM SA and ViacomCBS
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and ViacomCBS 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 ViacomCBS 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 ViacomCBS, you can compare the effects of market volatilities on WIMFARM SA and ViacomCBS 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 ViacomCBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and ViacomCBS.
Diversification Opportunities for WIMFARM SA and ViacomCBS
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WIMFARM and ViacomCBS is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and ViacomCBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ViacomCBS 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 ViacomCBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ViacomCBS has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and ViacomCBS go up and down completely randomly.
Pair Corralation between WIMFARM SA and ViacomCBS
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the ViacomCBS. But the stock apears to be less risky and, when comparing its historical volatility, WIMFARM SA EO is 1.31 times less risky than ViacomCBS. The stock trades about -0.25 of its potential returns per unit of risk. The ViacomCBS is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,990 in ViacomCBS on August 29, 2024 and sell it today you would earn a total of 130.00 from holding ViacomCBS or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. ViacomCBS
Performance |
| Timeline |
| WIMFARM SA EO |
| ViacomCBS |
WIMFARM SA and ViacomCBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and ViacomCBS
The main advantage of trading using opposite WIMFARM SA and ViacomCBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, ViacomCBS 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 ViacomCBS will offset losses from the drop in ViacomCBS's long position.| WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings | WIMFARM SA vs. Origin Agritech | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB |
| ViacomCBS vs. Australian Agricultural | ViacomCBS vs. Columbia Sportswear | ViacomCBS vs. WIMFARM SA EO | ViacomCBS vs. Penta Ocean Construction Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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