Correlation Between WIMFARM SA and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Corsair Gaming 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 Corsair Gaming 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 Corsair Gaming, you can compare the effects of market volatilities on WIMFARM SA and Corsair Gaming 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 Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Corsair Gaming.
Diversification Opportunities for WIMFARM SA and Corsair Gaming
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WIMFARM and Corsair is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Corsair Gaming go up and down completely randomly.
Pair Corralation between WIMFARM SA and Corsair Gaming
Assuming the 90 days horizon WIMFARM SA is expected to generate 4.44 times less return on investment than Corsair Gaming. In addition to that, WIMFARM SA is 1.42 times more volatile than Corsair Gaming. It trades about 0.07 of its total potential returns per unit of risk. Corsair Gaming is currently generating about 0.42 per unit of volatility. If you would invest 650.00 in Corsair Gaming on October 25, 2024 and sell it today you would earn a total of 191.00 from holding Corsair Gaming or generate 29.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. Corsair Gaming
Performance |
| Timeline |
| WIMFARM SA EO |
| Corsair Gaming |
WIMFARM SA and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Corsair Gaming
The main advantage of trading using opposite WIMFARM SA and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| WIMFARM SA vs. MAANSHAN IRON H | WIMFARM SA vs. ANGANG STEEL H | WIMFARM SA vs. Townsquare Media | WIMFARM SA vs. Fuji Media Holdings |
| Corsair Gaming vs. MOLSON RS BEVERAGE | Corsair Gaming vs. Quaker Chemical | Corsair Gaming vs. THAI BEVERAGE | Corsair Gaming vs. CHEMICAL INDUSTRIES |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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