Correlation Between WIMFARM SA and AURUBIS

Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and AURUBIS 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 AURUBIS 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 AURUBIS, you can compare the effects of market volatilities on WIMFARM SA and AURUBIS 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 AURUBIS. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and AURUBIS.

Diversification Opportunities for WIMFARM SA and AURUBIS

0.0

Correlation Coefficient

WIMFARM SA  AURUBIS

Pay attention - limited upside

The 3 months correlation between WIMFARM and AURUBIS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and AURUBIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AURUBIS 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 AURUBIS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AURUBIS has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and AURUBIS go up and down completely randomly.

Pair Corralation between WIMFARM SA and AURUBIS

If you would invest  315.00  in WIMFARM SA EO on December 21, 2024 and sell it today you would earn a total of  68.00  from holding WIMFARM SA EO or generate 21.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

WIMFARM SA EO  vs.  AURUBIS

WIMFARM SA EO

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in WIMFARM SA EO are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, WIMFARM SA reported solid returns over the last few months and may actually be approaching a breakup point.

AURUBIS

Risk-Adjusted Performance

Good

Over the last 90 days AURUBIS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, AURUBIS is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with WIMFARM SA and AURUBIS

The main advantage of trading using opposite WIMFARM SA and AURUBIS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, AURUBIS 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 AURUBIS will offset losses from the drop in AURUBIS's long position.

The idea behind WIMFARM SA EO and AURUBIS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.