Correlation Between WIMFARM SA and FRASERS PROPERTY
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and FRASERS PROPERTY 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 FRASERS PROPERTY 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 FRASERS PROPERTY, you can compare the effects of market volatilities on WIMFARM SA and FRASERS PROPERTY 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 FRASERS PROPERTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and FRASERS PROPERTY.
Diversification Opportunities for WIMFARM SA and FRASERS PROPERTY
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between WIMFARM and FRASERS is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and FRASERS PROPERTY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRASERS PROPERTY 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 FRASERS PROPERTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRASERS PROPERTY has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and FRASERS PROPERTY go up and down completely randomly.
Pair Corralation between WIMFARM SA and FRASERS PROPERTY
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the FRASERS PROPERTY. But the stock apears to be less risky and, when comparing its historical volatility, WIMFARM SA EO is 1.02 times less risky than FRASERS PROPERTY. The stock trades about -0.27 of its potential returns per unit of risk. The FRASERS PROPERTY is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 60.00 in FRASERS PROPERTY on August 29, 2024 and sell it today you would earn a total of 4.00 from holding FRASERS PROPERTY or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. FRASERS PROPERTY
Performance |
| Timeline |
| WIMFARM SA EO |
| FRASERS PROPERTY |
WIMFARM SA and FRASERS PROPERTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and FRASERS PROPERTY
The main advantage of trading using opposite WIMFARM SA and FRASERS PROPERTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, FRASERS PROPERTY 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 FRASERS PROPERTY will offset losses from the drop in FRASERS PROPERTY's long position.| WIMFARM SA vs. Daimler Truck Holding | WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings | WIMFARM SA vs. Origin Agritech |
| FRASERS PROPERTY vs. Sumitomo Mitsui Construction | FRASERS PROPERTY vs. WIMFARM SA EO | FRASERS PROPERTY vs. PACIFIC ONLINE | FRASERS PROPERTY vs. CarsalesCom |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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