Correlation Between WIMFARM SA and CK HUTCHISON
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and CK HUTCHISON 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 CK HUTCHISON 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 CK HUTCHISON HLDGS, you can compare the effects of market volatilities on WIMFARM SA and CK HUTCHISON 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 CK HUTCHISON. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and CK HUTCHISON.
Diversification Opportunities for WIMFARM SA and CK HUTCHISON
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WIMFARM and 2CKA is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and CK HUTCHISON HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK HUTCHISON HLDGS 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 CK HUTCHISON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK HUTCHISON HLDGS has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and CK HUTCHISON go up and down completely randomly.
Pair Corralation between WIMFARM SA and CK HUTCHISON
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the CK HUTCHISON. In addition to that, WIMFARM SA is 1.33 times more volatile than CK HUTCHISON HLDGS. It trades about -0.23 of its total potential returns per unit of risk. CK HUTCHISON HLDGS is currently generating about 0.18 per unit of volatility. If you would invest 454.00 in CK HUTCHISON HLDGS on September 5, 2024 and sell it today you would earn a total of 22.00 from holding CK HUTCHISON HLDGS or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
WIMFARM SA EO vs. CK HUTCHISON HLDGS
Performance |
| Timeline |
| WIMFARM SA EO |
| CK HUTCHISON HLDGS |
WIMFARM SA and CK HUTCHISON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and CK HUTCHISON
The main advantage of trading using opposite WIMFARM SA and CK HUTCHISON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, CK HUTCHISON 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 CK HUTCHISON will offset losses from the drop in CK HUTCHISON'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 |
| CK HUTCHISON vs. Genco Shipping Trading | CK HUTCHISON vs. REINET INVESTMENTS SCA | CK HUTCHISON vs. WisdomTree Investments | CK HUTCHISON vs. WIMFARM SA EO |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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