Correlation Between Wing Yip and Farmmi
Can any of the company-specific risk be diversified away by investing in both Wing Yip and Farmmi 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 Wing Yip and Farmmi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wing Yip Food and Farmmi Inc, you can compare the effects of market volatilities on Wing Yip and Farmmi 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 Wing Yip with a short position of Farmmi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wing Yip and Farmmi.
Diversification Opportunities for Wing Yip and Farmmi
Pay attention - limited upside
The 3 months correlation between Wing and Farmmi is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Wing Yip Food and Farmmi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmmi Inc and Wing Yip 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 Wing Yip Food are associated (or correlated) with Farmmi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmmi Inc has no effect on the direction of Wing Yip i.e., Wing Yip and Farmmi go up and down completely randomly.
Pair Corralation between Wing Yip and Farmmi
Given the investment horizon of 90 days Wing Yip Food is expected to generate 0.71 times more return on investment than Farmmi. However, Wing Yip Food is 1.41 times less risky than Farmmi. It trades about -0.05 of its potential returns per unit of risk. Farmmi Inc is currently generating about -0.27 per unit of risk. If you would invest 1,010 in Wing Yip Food on December 27, 2024 and sell it today you would lose (61.00) from holding Wing Yip Food or give up 6.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wing Yip Food vs. Farmmi Inc
Performance |
| Timeline |
| Wing Yip Food |
| Farmmi Inc |
Wing Yip and Farmmi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wing Yip and Farmmi
The main advantage of trading using opposite Wing Yip and Farmmi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wing Yip position performs unexpectedly, Farmmi 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 Farmmi will offset losses from the drop in Farmmi's long position.| Wing Yip vs. Borealis Foods | Wing Yip vs. CIMG Inc | Wing Yip vs. Smithfield Foods, Common | Wing Yip vs. Above Food Ingredients |
| Farmmi vs. Bit Origin | Farmmi vs. Better Choice | Farmmi vs. Laird Superfood | Farmmi vs. Arcadia Biosciences |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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