Correlation Between Superior Plus and WIMFARM SA
Can any of the company-specific risk be diversified away by investing in both Superior Plus and WIMFARM SA 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 Superior Plus and WIMFARM SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and WIMFARM SA EO, you can compare the effects of market volatilities on Superior Plus and WIMFARM SA 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 Superior Plus with a short position of WIMFARM SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and WIMFARM SA.
Diversification Opportunities for Superior Plus and WIMFARM SA
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Superior and WIMFARM is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and WIMFARM SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIMFARM SA EO and Superior Plus 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 Superior Plus Corp are associated (or correlated) with WIMFARM SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIMFARM SA EO has no effect on the direction of Superior Plus i.e., Superior Plus and WIMFARM SA go up and down completely randomly.
Pair Corralation between Superior Plus and WIMFARM SA
Assuming the 90 days horizon Superior Plus Corp is expected to generate 3.24 times more return on investment than WIMFARM SA. However, Superior Plus is 3.24 times more volatile than WIMFARM SA EO. It trades about -0.01 of its potential returns per unit of risk. WIMFARM SA EO is currently generating about -0.26 per unit of risk. If you would invest 428.00 in Superior Plus Corp on August 28, 2024 and sell it today you would lose (18.00) from holding Superior Plus Corp or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. WIMFARM SA EO
Performance |
| Timeline |
| Superior Plus Corp |
| WIMFARM SA EO |
Superior Plus and WIMFARM SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and WIMFARM SA
The main advantage of trading using opposite Superior Plus and WIMFARM SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, WIMFARM SA 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 WIMFARM SA will offset losses from the drop in WIMFARM SA's long position.| Superior Plus vs. Canon Marketing Japan | Superior Plus vs. CANON MARKETING JP | Superior Plus vs. KRISPY KREME DL 01 | Superior Plus vs. SIDETRADE EO 1 |
| WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings | WIMFARM SA vs. Origin Agritech | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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