Correlation Between WIMFARM SA and Poste Italiane
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Poste Italiane 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 Poste Italiane 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 Poste Italiane SpA, you can compare the effects of market volatilities on WIMFARM SA and Poste Italiane 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 Poste Italiane. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Poste Italiane.
Diversification Opportunities for WIMFARM SA and Poste Italiane
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WIMFARM and Poste is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Poste Italiane SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poste Italiane SpA 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 Poste Italiane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poste Italiane SpA has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Poste Italiane go up and down completely randomly.
Pair Corralation between WIMFARM SA and Poste Italiane
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 10.97 times more return on investment than Poste Italiane. However, WIMFARM SA is 10.97 times more volatile than Poste Italiane SpA. It trades about 0.19 of its potential returns per unit of risk. Poste Italiane SpA is currently generating about 0.68 per unit of risk. If you would invest 315.00 in WIMFARM SA EO on October 24, 2024 and sell it today you would earn a total of 62.00 from holding WIMFARM SA EO or generate 19.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. Poste Italiane SpA
Performance |
| Timeline |
| WIMFARM SA EO |
| Poste Italiane SpA |
WIMFARM SA and Poste Italiane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Poste Italiane
The main advantage of trading using opposite WIMFARM SA and Poste Italiane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Poste Italiane 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 Poste Italiane will offset losses from the drop in Poste Italiane's long position.| WIMFARM SA vs. COFCO Joycome Foods | WIMFARM SA vs. GWILLI FOOD | WIMFARM SA vs. TYSON FOODS A | WIMFARM SA vs. Coor Service Management |
| Poste Italiane vs. Casio Computer CoLtd | Poste Italiane vs. CRISPR Therapeutics AG | Poste Italiane vs. INTERSHOP Communications Aktiengesellschaft | Poste Italiane vs. Computershare Limited |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |