Correlation Between WIMFARM SA and CVB Financial
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and CVB Financial 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 CVB Financial 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 CVB Financial Corp, you can compare the effects of market volatilities on WIMFARM SA and CVB Financial 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 CVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and CVB Financial.
Diversification Opportunities for WIMFARM SA and CVB Financial
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WIMFARM and CVB is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and CVB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVB Financial Corp 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 CVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVB Financial Corp has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and CVB Financial go up and down completely randomly.
Pair Corralation between WIMFARM SA and CVB Financial
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the CVB Financial. In addition to that, WIMFARM SA is 1.4 times more volatile than CVB Financial Corp. It trades about -0.06 of its total potential returns per unit of risk. CVB Financial Corp is currently generating about 0.01 per unit of volatility. If you would invest 2,005 in CVB Financial Corp on October 16, 2024 and sell it today you would lose (35.00) from holding CVB Financial Corp or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
WIMFARM SA EO vs. CVB Financial Corp
Performance |
| Timeline |
| WIMFARM SA EO |
| CVB Financial Corp |
WIMFARM SA and CVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and CVB Financial
The main advantage of trading using opposite WIMFARM SA and CVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, CVB Financial 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 CVB Financial will offset losses from the drop in CVB Financial's long position.| WIMFARM SA vs. Magnachip Semiconductor | WIMFARM SA vs. Elmos Semiconductor SE | WIMFARM SA vs. BE Semiconductor Industries | WIMFARM SA vs. GRUPO CARSO A1 |
| CVB Financial vs. Haier Smart Home | CVB Financial vs. ADDUS HOMECARE | CVB Financial vs. Hisense Home Appliances | CVB Financial vs. CITIC Telecom International |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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