Correlation Between WIMFARM SA and Kraft Heinz
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Kraft Heinz 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 Kraft Heinz 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 Kraft Heinz Co, you can compare the effects of market volatilities on WIMFARM SA and Kraft Heinz 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 Kraft Heinz. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Kraft Heinz.
Diversification Opportunities for WIMFARM SA and Kraft Heinz
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WIMFARM and Kraft is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Kraft Heinz Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kraft Heinz 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 Kraft Heinz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraft Heinz has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Kraft Heinz go up and down completely randomly.
Pair Corralation between WIMFARM SA and Kraft Heinz
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 2.19 times more return on investment than Kraft Heinz. However, WIMFARM SA is 2.19 times more volatile than Kraft Heinz Co. It trades about 0.12 of its potential returns per unit of risk. Kraft Heinz Co is currently generating about 0.01 per unit of risk. If you would invest 333.00 in WIMFARM SA EO on September 14, 2024 and sell it today you would earn a total of 24.00 from holding WIMFARM SA EO or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. Kraft Heinz Co
Performance |
| Timeline |
| WIMFARM SA EO |
| Kraft Heinz |
WIMFARM SA and Kraft Heinz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Kraft Heinz
The main advantage of trading using opposite WIMFARM SA and Kraft Heinz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Kraft Heinz 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 Kraft Heinz will offset losses from the drop in Kraft Heinz'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 |
| Kraft Heinz vs. WIMFARM SA EO | Kraft Heinz vs. RCM TECHNOLOGIES | Kraft Heinz vs. Penta Ocean Construction Co | Kraft Heinz vs. Dairy Farm 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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