Correlation Between WIMFARM SA and NORW CRS
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and NORW CRS 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 NORW CRS 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 NORW CRS LINE, you can compare the effects of market volatilities on WIMFARM SA and NORW CRS 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 NORW CRS. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and NORW CRS.
Diversification Opportunities for WIMFARM SA and NORW CRS
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WIMFARM and NORW is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and NORW CRS LINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORW CRS LINE 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 NORW CRS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORW CRS LINE has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and NORW CRS go up and down completely randomly.
Pair Corralation between WIMFARM SA and NORW CRS
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the NORW CRS. But the stock apears to be less risky and, when comparing its historical volatility, WIMFARM SA EO is 1.69 times less risky than NORW CRS. The stock trades about -0.19 of its potential returns per unit of risk. The NORW CRS LINE is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,268 in NORW CRS LINE on September 4, 2024 and sell it today you would earn a total of 390.00 from holding NORW CRS LINE or generate 17.2% 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. NORW CRS LINE
Performance |
| Timeline |
| WIMFARM SA EO |
| NORW CRS LINE |
WIMFARM SA and NORW CRS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and NORW CRS
The main advantage of trading using opposite WIMFARM SA and NORW CRS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, NORW CRS 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 NORW CRS will offset losses from the drop in NORW CRS's long position.| WIMFARM SA vs. VOLVO B UNSPADR | WIMFARM SA vs. KOMATSU LTD SPONS | WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings |
| NORW CRS vs. COLUMBIA SPORTSWEAR | NORW CRS vs. USWE SPORTS AB | NORW CRS vs. WIMFARM SA EO | NORW CRS vs. VIAPLAY GROUP AB |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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