Correlation Between WIMFARM SA and SWISS WATER
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and SWISS WATER 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 SWISS WATER 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 SWISS WATER DECAFFCOFFEE, you can compare the effects of market volatilities on WIMFARM SA and SWISS WATER 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 SWISS WATER. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and SWISS WATER.
Diversification Opportunities for WIMFARM SA and SWISS WATER
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WIMFARM and SWISS is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and SWISS WATER DECAFFCOFFEE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SWISS WATER DECAFFCOFFEE 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 SWISS WATER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SWISS WATER DECAFFCOFFEE has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and SWISS WATER go up and down completely randomly.
Pair Corralation between WIMFARM SA and SWISS WATER
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 1.55 times more return on investment than SWISS WATER. However, WIMFARM SA is 1.55 times more volatile than SWISS WATER DECAFFCOFFEE. It trades about 0.0 of its potential returns per unit of risk. SWISS WATER DECAFFCOFFEE is currently generating about -0.2 per unit of risk. If you would invest 383.00 in WIMFARM SA EO on November 7, 2024 and sell it today you would lose (7.00) from holding WIMFARM SA EO or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
WIMFARM SA EO vs. SWISS WATER DECAFFCOFFEE
Performance |
| Timeline |
| WIMFARM SA EO |
| SWISS WATER DECAFFCOFFEE |
WIMFARM SA and SWISS WATER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and SWISS WATER
The main advantage of trading using opposite WIMFARM SA and SWISS WATER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, SWISS WATER 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 SWISS WATER will offset losses from the drop in SWISS WATER's long position.| WIMFARM SA vs. MPH Health Care | WIMFARM SA vs. KENEDIX OFFICE INV | WIMFARM SA vs. Tower One Wireless | WIMFARM SA vs. Eidesvik Offshore ASA |
| SWISS WATER vs. SPORTING | SWISS WATER vs. Verizon Communications | SWISS WATER vs. PARKEN Sport Entertainment | SWISS WATER vs. NTG Nordic Transport |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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