Correlation Between Conifer Holding and Wilhelmina
Can any of the company-specific risk be diversified away by investing in both Conifer Holding and Wilhelmina 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 Conifer Holding and Wilhelmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conifer Holding and Wilhelmina, you can compare the effects of market volatilities on Conifer Holding and Wilhelmina 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 Conifer Holding with a short position of Wilhelmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conifer Holding and Wilhelmina.
Diversification Opportunities for Conifer Holding and Wilhelmina
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Conifer and Wilhelmina is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Conifer Holding and Wilhelmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilhelmina and Conifer Holding 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 Conifer Holding are associated (or correlated) with Wilhelmina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilhelmina has no effect on the direction of Conifer Holding i.e., Conifer Holding and Wilhelmina go up and down completely randomly.
Pair Corralation between Conifer Holding and Wilhelmina
Given the investment horizon of 90 days Conifer Holding is expected to under-perform the Wilhelmina. In addition to that, Conifer Holding is 1.05 times more volatile than Wilhelmina. It trades about -0.06 of its total potential returns per unit of risk. Wilhelmina is currently generating about 0.31 per unit of volatility. If you would invest 332.00 in Wilhelmina on August 29, 2024 and sell it today you would earn a total of 67.00 from holding Wilhelmina or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Conifer Holding vs. Wilhelmina
Performance |
| Timeline |
| Conifer Holding |
| Wilhelmina |
Conifer Holding and Wilhelmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conifer Holding and Wilhelmina
The main advantage of trading using opposite Conifer Holding and Wilhelmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conifer Holding position performs unexpectedly, Wilhelmina 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 Wilhelmina will offset losses from the drop in Wilhelmina's long position.| Conifer Holding vs. Wilhelmina | Conifer Holding vs. Unico American | Conifer Holding vs. Creative Media Community | Conifer Holding vs. Kingstone Companies |
| Wilhelmina vs. Performant Financial | Wilhelmina vs. Network 1 Technologies | Wilhelmina vs. Rentokil Initial PLC | Wilhelmina vs. Mader Group Limited |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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