Correlation Between WIMFARM SA and ETFS Coffee
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and ETFS Coffee 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 ETFS Coffee 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 ETFS Coffee ETC, you can compare the effects of market volatilities on WIMFARM SA and ETFS Coffee 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 ETFS Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and ETFS Coffee.
Diversification Opportunities for WIMFARM SA and ETFS Coffee
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between WIMFARM and ETFS is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and ETFS Coffee ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETFS Coffee ETC 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 ETFS Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETFS Coffee ETC has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and ETFS Coffee go up and down completely randomly.
Pair Corralation between WIMFARM SA and ETFS Coffee
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 3.39 times more return on investment than ETFS Coffee. However, WIMFARM SA is 3.39 times more volatile than ETFS Coffee ETC. It trades about 0.13 of its potential returns per unit of risk. ETFS Coffee ETC is currently generating about 0.02 per unit of risk. If you would invest 357.00 in WIMFARM SA EO on October 12, 2024 and sell it today you would earn a total of 40.00 from holding WIMFARM SA EO or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.24% |
| Values | Daily Returns |
WIMFARM SA EO vs. ETFS Coffee ETC
Performance |
| Timeline |
| WIMFARM SA EO |
| ETFS Coffee ETC |
WIMFARM SA and ETFS Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and ETFS Coffee
The main advantage of trading using opposite WIMFARM SA and ETFS Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, ETFS Coffee 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 ETFS Coffee will offset losses from the drop in ETFS Coffee'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 |
| ETFS Coffee vs. Clean Energy Fuels | ETFS Coffee vs. CALTAGIRONE EDITORE | ETFS Coffee vs. United States Steel | ETFS Coffee vs. Ultra Clean Holdings |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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