Correlation Between WIMFARM SA and BRIT AMER
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and BRIT AMER 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 BRIT AMER 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 BRIT AMER TOBACCO, you can compare the effects of market volatilities on WIMFARM SA and BRIT AMER 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 BRIT AMER. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and BRIT AMER.
Diversification Opportunities for WIMFARM SA and BRIT AMER
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WIMFARM and BRIT is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and BRIT AMER TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRIT AMER TOBACCO 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 BRIT AMER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRIT AMER TOBACCO has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and BRIT AMER go up and down completely randomly.
Pair Corralation between WIMFARM SA and BRIT AMER
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 2.76 times more return on investment than BRIT AMER. However, WIMFARM SA is 2.76 times more volatile than BRIT AMER TOBACCO. It trades about 0.1 of its potential returns per unit of risk. BRIT AMER TOBACCO is currently generating about 0.02 per unit of risk. If you would invest 323.00 in WIMFARM SA EO on September 19, 2024 and sell it today you would earn a total of 19.00 from holding WIMFARM SA EO or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. BRIT AMER TOBACCO
Performance |
| Timeline |
| WIMFARM SA EO |
| BRIT AMER TOBACCO |
WIMFARM SA and BRIT AMER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and BRIT AMER
The main advantage of trading using opposite WIMFARM SA and BRIT AMER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, BRIT AMER 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 BRIT AMER will offset losses from the drop in BRIT AMER's long position.| WIMFARM SA vs. AB Volvo | WIMFARM SA vs. Daimler Truck Holding | WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB |
| BRIT AMER vs. SEI INVESTMENTS | BRIT AMER vs. ALTAIR RES INC | BRIT AMER vs. MYFAIR GOLD P | BRIT AMER vs. SOGECLAIR SA INH |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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