Correlation Between WIMFARM SA and TFS FINANCIAL
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and TFS FINANCIAL 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 TFS FINANCIAL 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 TFS FINANCIAL, you can compare the effects of market volatilities on WIMFARM SA and TFS FINANCIAL 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 TFS FINANCIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and TFS FINANCIAL.
Diversification Opportunities for WIMFARM SA and TFS FINANCIAL
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WIMFARM and TFS is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and TFS FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFS FINANCIAL 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 TFS FINANCIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TFS FINANCIAL has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and TFS FINANCIAL go up and down completely randomly.
Pair Corralation between WIMFARM SA and TFS FINANCIAL
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the TFS FINANCIAL. In addition to that, WIMFARM SA is 2.09 times more volatile than TFS FINANCIAL. It trades about -0.01 of its total potential returns per unit of risk. TFS FINANCIAL is currently generating about 0.09 per unit of volatility. If you would invest 1,155 in TFS FINANCIAL on September 14, 2024 and sell it today you would earn a total of 115.00 from holding TFS FINANCIAL or generate 9.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. TFS FINANCIAL
Performance |
| Timeline |
| WIMFARM SA EO |
| TFS FINANCIAL |
WIMFARM SA and TFS FINANCIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and TFS FINANCIAL
The main advantage of trading using opposite WIMFARM SA and TFS FINANCIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, TFS FINANCIAL 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 TFS FINANCIAL will offset losses from the drop in TFS FINANCIAL'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 |
| TFS FINANCIAL vs. Apple Inc | TFS FINANCIAL vs. Apple Inc | TFS FINANCIAL vs. Apple Inc | TFS FINANCIAL vs. Apple Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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