Correlation Between WIMFARM SA and Ming Le
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Ming Le 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 Ming Le 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 Ming Le Sports, you can compare the effects of market volatilities on WIMFARM SA and Ming Le 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 Ming Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Ming Le.
Diversification Opportunities for WIMFARM SA and Ming Le
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WIMFARM and Ming is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Ming Le Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Le Sports 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 Ming Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Le Sports has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Ming Le go up and down completely randomly.
Pair Corralation between WIMFARM SA and Ming Le
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the Ming Le. But the stock apears to be less risky and, when comparing its historical volatility, WIMFARM SA EO is 4.72 times less risky than Ming Le. The stock trades about -0.25 of its potential returns per unit of risk. The Ming Le Sports is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 100.00 in Ming Le Sports on August 29, 2024 and sell it today you would earn a total of 39.00 from holding Ming Le Sports or generate 39.0% 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. Ming Le Sports
Performance |
| Timeline |
| WIMFARM SA EO |
| Ming Le Sports |
WIMFARM SA and Ming Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Ming Le
The main advantage of trading using opposite WIMFARM SA and Ming Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Ming Le 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 Ming Le will offset losses from the drop in Ming Le'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 |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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