Correlation Between WIMFARM SA and Gecina SA
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Gecina 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 WIMFARM SA and Gecina SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIMFARM SA EO and Gecina SA, you can compare the effects of market volatilities on WIMFARM SA and Gecina 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 WIMFARM SA with a short position of Gecina SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Gecina SA.
Diversification Opportunities for WIMFARM SA and Gecina SA
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WIMFARM and Gecina is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Gecina SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gecina SA and WIMFARM SA 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 WIMFARM SA EO are associated (or correlated) with Gecina SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gecina SA has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Gecina SA go up and down completely randomly.
Pair Corralation between WIMFARM SA and Gecina SA
Assuming the 90 days horizon WIMFARM SA EO is expected to under-perform the Gecina SA. In addition to that, WIMFARM SA is 2.5 times more volatile than Gecina SA. It trades about -0.06 of its total potential returns per unit of risk. Gecina SA is currently generating about 0.01 per unit of volatility. If you would invest 8,583 in Gecina SA on September 20, 2024 and sell it today you would earn a total of 317.00 from holding Gecina SA or generate 3.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
WIMFARM SA EO vs. Gecina SA
Performance |
Timeline |
WIMFARM SA EO |
Gecina SA |
WIMFARM SA and Gecina SA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WIMFARM SA and Gecina SA
The main advantage of trading using opposite WIMFARM SA and Gecina SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Gecina 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 Gecina SA will offset losses from the drop in Gecina SA's long position.WIMFARM SA vs. AB Volvo | WIMFARM SA vs. Daimler Truck Holding | WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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