Correlation Between WIMFARM SA and Endeavour Mining
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Endeavour Mining 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 Endeavour Mining 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 Endeavour Mining PLC, you can compare the effects of market volatilities on WIMFARM SA and Endeavour Mining 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 Endeavour Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Endeavour Mining.
Diversification Opportunities for WIMFARM SA and Endeavour Mining
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WIMFARM and Endeavour is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Endeavour Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavour Mining PLC 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 Endeavour Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavour Mining PLC has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Endeavour Mining go up and down completely randomly.
Pair Corralation between WIMFARM SA and Endeavour Mining
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the Endeavour Mining. In addition to that, WIMFARM SA is 1.43 times more volatile than Endeavour Mining PLC. It trades about -0.06 of its total potential returns per unit of risk. Endeavour Mining PLC is currently generating about 0.0 per unit of volatility. If you would invest 1,979 in Endeavour Mining PLC on October 13, 2024 and sell it today you would lose (196.00) from holding Endeavour Mining PLC or give up 9.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
WIMFARM SA EO vs. Endeavour Mining PLC
Performance |
| Timeline |
| WIMFARM SA EO |
| Endeavour Mining PLC |
WIMFARM SA and Endeavour Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Endeavour Mining
The main advantage of trading using opposite WIMFARM SA and Endeavour Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Endeavour Mining 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 Endeavour Mining will offset losses from the drop in Endeavour Mining's long position.| WIMFARM SA vs. FORMPIPE SOFTWARE AB | WIMFARM SA vs. ADDUS HOMECARE | WIMFARM SA vs. Kingdee International Software | WIMFARM SA vs. USU Software AG |
| Endeavour Mining vs. Dairy Farm International | Endeavour Mining vs. VIENNA INSURANCE GR | Endeavour Mining vs. WIMFARM SA EO | Endeavour Mining vs. Vienna Insurance Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |