Correlation Between WIMFARM SA and SYSTEMAIR
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and SYSTEMAIR 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 SYSTEMAIR 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 SYSTEMAIR AB, you can compare the effects of market volatilities on WIMFARM SA and SYSTEMAIR 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 SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and SYSTEMAIR.
Diversification Opportunities for WIMFARM SA and SYSTEMAIR
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between WIMFARM and SYSTEMAIR is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB 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 SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and SYSTEMAIR go up and down completely randomly.
Pair Corralation between WIMFARM SA and SYSTEMAIR
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 5.96 times more return on investment than SYSTEMAIR. However, WIMFARM SA is 5.96 times more volatile than SYSTEMAIR AB. It trades about 0.16 of its potential returns per unit of risk. SYSTEMAIR AB is currently generating about -0.66 per unit of risk. If you would invest 342.00 in WIMFARM SA EO on October 16, 2024 and sell it today you would earn a total of 49.00 from holding WIMFARM SA EO or generate 14.33% 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. SYSTEMAIR AB
Performance |
| Timeline |
| WIMFARM SA EO |
| SYSTEMAIR AB |
WIMFARM SA and SYSTEMAIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and SYSTEMAIR
The main advantage of trading using opposite WIMFARM SA and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.| WIMFARM SA vs. GigaMedia | WIMFARM SA vs. Dave Busters Entertainment | WIMFARM SA vs. PARKEN Sport Entertainment | WIMFARM SA vs. Tencent Music Entertainment |
| SYSTEMAIR vs. WIMFARM SA EO | SYSTEMAIR vs. PICKN PAY STORES | SYSTEMAIR vs. Ross Stores | SYSTEMAIR vs. Federal Agricultural Mortgage |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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