Correlation Between WIMFARM SA and AUST AGRICULTURAL
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and AUST AGRICULTURAL 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 AUST AGRICULTURAL 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 AUST AGRICULTURAL, you can compare the effects of market volatilities on WIMFARM SA and AUST AGRICULTURAL 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 AUST AGRICULTURAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and AUST AGRICULTURAL.
Diversification Opportunities for WIMFARM SA and AUST AGRICULTURAL
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WIMFARM and AUST is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and AUST AGRICULTURAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUST AGRICULTURAL 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 AUST AGRICULTURAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUST AGRICULTURAL has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and AUST AGRICULTURAL go up and down completely randomly.
Pair Corralation between WIMFARM SA and AUST AGRICULTURAL
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the AUST AGRICULTURAL. In addition to that, WIMFARM SA is 1.39 times more volatile than AUST AGRICULTURAL. It trades about -0.27 of its total potential returns per unit of risk. AUST AGRICULTURAL is currently generating about -0.04 per unit of volatility. If you would invest 84.00 in AUST AGRICULTURAL on August 29, 2024 and sell it today you would lose (1.00) from holding AUST AGRICULTURAL or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
WIMFARM SA EO vs. AUST AGRICULTURAL
Performance |
| Timeline |
| WIMFARM SA EO |
| AUST AGRICULTURAL |
WIMFARM SA and AUST AGRICULTURAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and AUST AGRICULTURAL
The main advantage of trading using opposite WIMFARM SA and AUST AGRICULTURAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, AUST AGRICULTURAL 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 AUST AGRICULTURAL will offset losses from the drop in AUST AGRICULTURAL's long position.| WIMFARM SA vs. Daimler Truck Holding | WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings | WIMFARM SA vs. Origin Agritech |
| AUST AGRICULTURAL vs. Astral Foods Limited | AUST AGRICULTURAL vs. Food Life Companies | AUST AGRICULTURAL vs. Gol Intelligent Airlines | AUST AGRICULTURAL vs. Charoen Pokphand Foods |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |