Correlation Between WIMFARM SA and Easy Software
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Easy Software 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 Easy Software 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 Easy Software AG, you can compare the effects of market volatilities on WIMFARM SA and Easy Software 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 Easy Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Easy Software.
Diversification Opportunities for WIMFARM SA and Easy Software
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WIMFARM and Easy is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Easy Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Software AG 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 Easy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Software AG has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Easy Software go up and down completely randomly.
Pair Corralation between WIMFARM SA and Easy Software
Assuming the 90 days horizon WIMFARM SA is expected to generate 1.15 times less return on investment than Easy Software. In addition to that, WIMFARM SA is 1.85 times more volatile than Easy Software AG. It trades about 0.13 of its total potential returns per unit of risk. Easy Software AG is currently generating about 0.28 per unit of volatility. If you would invest 1,550 in Easy Software AG on October 12, 2024 and sell it today you would earn a total of 260.00 from holding Easy Software AG or generate 16.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
WIMFARM SA EO vs. Easy Software AG
Performance |
| Timeline |
| WIMFARM SA EO |
| Easy Software AG |
WIMFARM SA and Easy Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Easy Software
The main advantage of trading using opposite WIMFARM SA and Easy Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Easy Software 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 Easy Software will offset losses from the drop in Easy Software'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 |
| Easy Software vs. Salesforce | Easy Software vs. COMBA TELECOM SYST | Easy Software vs. PACIFIC ONLINE | Easy Software vs. Chunghwa Telecom Co |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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