Correlation Between WIMFARM SA and Casio Computer
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Casio Computer 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 Casio Computer 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 Casio Computer CoLtd, you can compare the effects of market volatilities on WIMFARM SA and Casio Computer 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 Casio Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Casio Computer.
Diversification Opportunities for WIMFARM SA and Casio Computer
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WIMFARM and Casio is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Casio Computer CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casio Computer CoLtd 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 Casio Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casio Computer CoLtd has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Casio Computer go up and down completely randomly.
Pair Corralation between WIMFARM SA and Casio Computer
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 4.0 times more return on investment than Casio Computer. However, WIMFARM SA is 4.0 times more volatile than Casio Computer CoLtd. It trades about 0.13 of its potential returns per unit of risk. Casio Computer CoLtd is currently generating about -0.05 per unit of risk. If you would invest 357.00 in WIMFARM SA EO on October 12, 2024 and sell it today you would earn a total of 40.00 from holding WIMFARM SA EO or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. Casio Computer CoLtd
Performance |
| Timeline |
| WIMFARM SA EO |
| Casio Computer CoLtd |
WIMFARM SA and Casio Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Casio Computer
The main advantage of trading using opposite WIMFARM SA and Casio Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Casio Computer 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 Casio Computer will offset losses from the drop in Casio Computer's long position.| WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB | WIMFARM SA vs. Talanx AG |
| Casio Computer vs. ARROW ELECTRONICS | Casio Computer vs. STRAYER EDUCATION | Casio Computer vs. Renesas Electronics | Casio Computer vs. Grand Canyon Education |
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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