Correlation Between WIMFARM SA and SCANDMEDICAL SOLDK-040
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040, you can compare the effects of market volatilities on WIMFARM SA and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and SCANDMEDICAL SOLDK-040.
Diversification Opportunities for WIMFARM SA and SCANDMEDICAL SOLDK-040
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WIMFARM and SCANDMEDICAL is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and SCANDMEDICAL SOLDK 040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCANDMEDICAL SOLDK 040 has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and SCANDMEDICAL SOLDK-040 go up and down completely randomly.
Pair Corralation between WIMFARM SA and SCANDMEDICAL SOLDK-040
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 1.49 times more return on investment than SCANDMEDICAL SOLDK-040. However, WIMFARM SA is 1.49 times more volatile than SCANDMEDICAL SOLDK 040. It trades about 0.05 of its potential returns per unit of risk. SCANDMEDICAL SOLDK 040 is currently generating about -0.04 per unit of risk. If you would invest 356.00 in WIMFARM SA EO on October 22, 2024 and sell it today you would earn a total of 24.00 from holding WIMFARM SA EO or generate 6.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
WIMFARM SA EO vs. SCANDMEDICAL SOLDK 040
Performance |
Timeline |
WIMFARM SA EO |
SCANDMEDICAL SOLDK 040 |
WIMFARM SA and SCANDMEDICAL SOLDK-040 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WIMFARM SA and SCANDMEDICAL SOLDK-040
The main advantage of trading using opposite WIMFARM SA and SCANDMEDICAL SOLDK-040 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 will offset losses from the drop in SCANDMEDICAL SOLDK-040's long position.WIMFARM SA vs. Park Hotels Resorts | WIMFARM SA vs. Dalata Hotel Group | WIMFARM SA vs. Luckin Coffee | WIMFARM SA vs. Southwest Airlines Co |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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