Correlation Between WIMFARM SA and Astellas Pharma
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Astellas Pharma 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 Astellas Pharma 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 Astellas Pharma, you can compare the effects of market volatilities on WIMFARM SA and Astellas Pharma 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 Astellas Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Astellas Pharma.
Diversification Opportunities for WIMFARM SA and Astellas Pharma
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WIMFARM and Astellas is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Astellas Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astellas Pharma 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 Astellas Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astellas Pharma has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Astellas Pharma go up and down completely randomly.
Pair Corralation between WIMFARM SA and Astellas Pharma
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the Astellas Pharma. In addition to that, WIMFARM SA is 1.94 times more volatile than Astellas Pharma. It trades about -0.06 of its total potential returns per unit of risk. Astellas Pharma is currently generating about -0.03 per unit of volatility. If you would invest 1,420 in Astellas Pharma on September 14, 2024 and sell it today you would lose (460.00) from holding Astellas Pharma or give up 32.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
WIMFARM SA EO vs. Astellas Pharma
Performance |
| Timeline |
| WIMFARM SA EO |
| Astellas Pharma |
WIMFARM SA and Astellas Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Astellas Pharma
The main advantage of trading using opposite WIMFARM SA and Astellas Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Astellas Pharma 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 Astellas Pharma will offset losses from the drop in Astellas Pharma'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 |
| Astellas Pharma vs. Roche Holding Ltd | Astellas Pharma vs. Amgen Inc | Astellas Pharma vs. Biogen Inc | Astellas Pharma vs. ASTELLAS PHARMA UNSPADR |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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