Weg Adm General Fund Fundamentals
| CFIWEG-1 | 1,300 100.00 7.14% |
Weg |
CFIWEG-1.SN fundamentals not found at this time
Pair Trading with Weg ADM
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Weg ADM position performs unexpectedly, the other equity 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 Weg ADM will appreciate offsetting losses from the drop in the long position's value.The ability to find closely correlated positions to Weg ADM could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Weg ADM when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Weg ADM - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Weg ADM General to buy it.
The correlation of Weg ADM is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Weg ADM moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Weg ADM General moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Weg ADM can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |