Correlation Between WIMFARM SA and INSURANCE AUST
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and INSURANCE AUST 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 INSURANCE AUST 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 INSURANCE AUST GRP, you can compare the effects of market volatilities on WIMFARM SA and INSURANCE AUST 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 INSURANCE AUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and INSURANCE AUST.
Diversification Opportunities for WIMFARM SA and INSURANCE AUST
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between WIMFARM and INSURANCE is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and INSURANCE AUST GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSURANCE AUST GRP 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 INSURANCE AUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSURANCE AUST GRP has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and INSURANCE AUST go up and down completely randomly.
Pair Corralation between WIMFARM SA and INSURANCE AUST
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the INSURANCE AUST. In addition to that, WIMFARM SA is 4.14 times more volatile than INSURANCE AUST GRP. It trades about 0.0 of its total potential returns per unit of risk. INSURANCE AUST GRP is currently generating about 0.22 per unit of volatility. If you would invest 500.00 in INSURANCE AUST GRP on October 29, 2024 and sell it today you would earn a total of 25.00 from holding INSURANCE AUST GRP or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. INSURANCE AUST GRP
Performance |
| Timeline |
| WIMFARM SA EO |
| INSURANCE AUST GRP |
WIMFARM SA and INSURANCE AUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and INSURANCE AUST
The main advantage of trading using opposite WIMFARM SA and INSURANCE AUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, INSURANCE AUST 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 INSURANCE AUST will offset losses from the drop in INSURANCE AUST's long position.| WIMFARM SA vs. PKSHA TECHNOLOGY INC | WIMFARM SA vs. Charter Communications | WIMFARM SA vs. Adtalem Global Education | WIMFARM SA vs. Iridium Communications |
| INSURANCE AUST vs. Canon Marketing Japan | INSURANCE AUST vs. CANON MARKETING JP | INSURANCE AUST vs. Tradeweb Markets | INSURANCE AUST vs. DICKS Sporting Goods |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges |