Correlation Between Wilhelmina and PFMT Old
Can any of the company-specific risk be diversified away by investing in both Wilhelmina and PFMT Old 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 Wilhelmina and PFMT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wilhelmina and PFMT Old, you can compare the effects of market volatilities on Wilhelmina and PFMT Old 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 Wilhelmina with a short position of PFMT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wilhelmina and PFMT Old.
Diversification Opportunities for Wilhelmina and PFMT Old
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wilhelmina and PFMT is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Wilhelmina and PFMT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFMT Old and Wilhelmina 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 Wilhelmina are associated (or correlated) with PFMT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFMT Old has no effect on the direction of Wilhelmina i.e., Wilhelmina and PFMT Old go up and down completely randomly.
Pair Corralation between Wilhelmina and PFMT Old
Given the investment horizon of 90 days Wilhelmina is expected to generate 14.38 times less return on investment than PFMT Old. In addition to that, Wilhelmina is 1.5 times more volatile than PFMT Old. It trades about 0.0 of its total potential returns per unit of risk. PFMT Old is currently generating about 0.03 per unit of volatility. If you would invest 283.00 in PFMT Old on October 22, 2024 and sell it today you would earn a total of 36.00 from holding PFMT Old or generate 12.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.2% |
| Values | Daily Returns |
Wilhelmina vs. PFMT Old
Performance |
| Timeline |
| Wilhelmina |
| PFMT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wilhelmina and PFMT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wilhelmina and PFMT Old
The main advantage of trading using opposite Wilhelmina and PFMT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wilhelmina position performs unexpectedly, PFMT Old 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 PFMT Old will offset losses from the drop in PFMT Old's long position.| Wilhelmina vs. Network 1 Technologies | Wilhelmina vs. Rentokil Initial PLC | Wilhelmina vs. Mader Group Limited | Wilhelmina vs. SPAR Group |
| PFMT Old vs. Network 1 Technologies | PFMT Old vs. Rentokil Initial PLC | PFMT Old vs. Wilhelmina | PFMT Old 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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