Correlation Between SCOR SE and WIMFARM SA
Can any of the company-specific risk be diversified away by investing in both SCOR SE 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 SCOR SE and WIMFARM SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR SE and WIMFARM SA EO, you can compare the effects of market volatilities on SCOR SE 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 SCOR SE with a short position of WIMFARM SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR SE and WIMFARM SA.
Diversification Opportunities for SCOR SE and WIMFARM SA
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCOR and WIMFARM is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SCOR SE 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 SCOR SE 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 SCOR SE 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 SCOR SE i.e., SCOR SE and WIMFARM SA go up and down completely randomly.
Pair Corralation between SCOR SE and WIMFARM SA
Assuming the 90 days trading horizon SCOR SE is expected to generate 2.92 times less return on investment than WIMFARM SA. But when comparing it to its historical volatility, SCOR SE is 4.67 times less risky than WIMFARM SA. It trades about 0.16 of its potential returns per unit of risk. WIMFARM SA EO is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 357.00 in WIMFARM SA EO on October 12, 2024 and sell it today you would earn a total of 28.00 from holding WIMFARM SA EO or generate 7.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCOR SE vs. WIMFARM SA EO
Performance |
| Timeline |
| SCOR SE |
| WIMFARM SA EO |
SCOR SE and WIMFARM SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR SE and WIMFARM SA
The main advantage of trading using opposite SCOR SE and WIMFARM SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR SE 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.| SCOR SE vs. WIMFARM SA EO | SCOR SE vs. Firan Technology Group | SCOR SE vs. Casio Computer CoLtd | SCOR SE vs. AGRICULTBK HADR25 YC |
| WIMFARM SA vs. De Grey Mining | WIMFARM SA vs. Burlington Stores | WIMFARM SA vs. JIAHUA STORES | WIMFARM SA vs. Costco Wholesale Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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