Correlation Between Astellas Pharma and WIMFARM SA
Can any of the company-specific risk be diversified away by investing in both Astellas Pharma 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 Astellas Pharma and WIMFARM SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astellas Pharma and WIMFARM SA EO, you can compare the effects of market volatilities on Astellas Pharma 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 Astellas Pharma with a short position of WIMFARM SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astellas Pharma and WIMFARM SA.
Diversification Opportunities for Astellas Pharma and WIMFARM SA
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astellas and WIMFARM is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Astellas Pharma 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 Astellas Pharma 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 Astellas Pharma 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 Astellas Pharma i.e., Astellas Pharma and WIMFARM SA go up and down completely randomly.
Pair Corralation between Astellas Pharma and WIMFARM SA
Assuming the 90 days horizon Astellas Pharma is expected to under-perform the WIMFARM SA. But the stock apears to be less risky and, when comparing its historical volatility, Astellas Pharma is 1.26 times less risky than WIMFARM SA. The stock trades about -0.12 of its potential returns per unit of risk. The WIMFARM SA EO is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 351.00 in WIMFARM SA EO on September 13, 2024 and sell it today you would earn a total of 17.00 from holding WIMFARM SA EO or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astellas Pharma vs. WIMFARM SA EO
Performance |
| Timeline |
| Astellas Pharma |
| WIMFARM SA EO |
Astellas Pharma and WIMFARM SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astellas Pharma and WIMFARM SA
The main advantage of trading using opposite Astellas Pharma and WIMFARM SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astellas Pharma 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.| Astellas Pharma vs. WIMFARM SA EO | Astellas Pharma vs. Dairy Farm International | Astellas Pharma vs. TITAN MACHINERY | Astellas Pharma vs. AGRICULTBK HADR25 YC |
| WIMFARM SA vs. AB Volvo | WIMFARM SA vs. Daimler Truck Holding | WIMFARM SA vs. Superior Plus Corp | 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |