Correlation Between WIMFARM SA and Globex Mining
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Globex Mining 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 Globex Mining 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 Globex Mining Enterprises, you can compare the effects of market volatilities on WIMFARM SA and Globex Mining 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 Globex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Globex Mining.
Diversification Opportunities for WIMFARM SA and Globex Mining
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WIMFARM and Globex is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Globex Mining Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globex Mining Enterprises 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 Globex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globex Mining Enterprises has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Globex Mining go up and down completely randomly.
Pair Corralation between WIMFARM SA and Globex Mining
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the Globex Mining. In addition to that, WIMFARM SA is 1.14 times more volatile than Globex Mining Enterprises. It trades about -0.07 of its total potential returns per unit of risk. Globex Mining Enterprises is currently generating about 0.05 per unit of volatility. If you would invest 45.00 in Globex Mining Enterprises on September 5, 2024 and sell it today you would earn a total of 28.00 from holding Globex Mining Enterprises or generate 62.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
WIMFARM SA EO vs. Globex Mining Enterprises
Performance |
| Timeline |
| WIMFARM SA EO |
| Globex Mining Enterprises |
WIMFARM SA and Globex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Globex Mining
The main advantage of trading using opposite WIMFARM SA and Globex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Globex Mining 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 Globex Mining will offset losses from the drop in Globex Mining's long position.| WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings | WIMFARM SA vs. Origin Agritech | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB |
| Globex Mining vs. Penta Ocean Construction Co | Globex Mining vs. WIMFARM SA EO | Globex Mining vs. Chongqing Machinery Electric | Globex Mining vs. GALENA MINING LTD |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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