Correlation Between WIMFARM SA and SEKISUI CHEMICAL
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL 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 SEKISUI CHEMICAL, you can compare the effects of market volatilities on WIMFARM SA and SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and SEKISUI CHEMICAL.
Diversification Opportunities for WIMFARM SA and SEKISUI CHEMICAL
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WIMFARM and SEKISUI is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and SEKISUI CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEKISUI CHEMICAL 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 SEKISUI CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEKISUI CHEMICAL has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and SEKISUI CHEMICAL go up and down completely randomly.
Pair Corralation between WIMFARM SA and SEKISUI CHEMICAL
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the SEKISUI CHEMICAL. In addition to that, WIMFARM SA is 2.95 times more volatile than SEKISUI CHEMICAL. It trades about -0.07 of its total potential returns per unit of risk. SEKISUI CHEMICAL is currently generating about -0.09 per unit of volatility. If you would invest 1,640 in SEKISUI CHEMICAL on November 3, 2024 and sell it today you would lose (60.00) from holding SEKISUI CHEMICAL or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
WIMFARM SA EO vs. SEKISUI CHEMICAL
Performance |
| Timeline |
| WIMFARM SA EO |
| SEKISUI CHEMICAL |
WIMFARM SA and SEKISUI CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and SEKISUI CHEMICAL
The main advantage of trading using opposite WIMFARM SA and SEKISUI CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, SEKISUI CHEMICAL 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 SEKISUI CHEMICAL will offset losses from the drop in SEKISUI CHEMICAL's long position.| WIMFARM SA vs. CDL INVESTMENT | WIMFARM SA vs. Commercial Vehicle Group | WIMFARM SA vs. SEI INVESTMENTS | WIMFARM SA vs. CarsalesCom |
| SEKISUI CHEMICAL vs. X FAB Silicon Foundries | SEKISUI CHEMICAL vs. CREO MEDICAL GRP | SEKISUI CHEMICAL vs. Diamyd Medical AB | SEKISUI CHEMICAL vs. Clearside Biomedical |
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 Stocks Directory module to find actively traded stocks across global markets.
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