Correlation Between WIMFARM SA and Palantir Technologies

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

Diversification Opportunities for WIMFARM SA and Palantir Technologies

WIMFARMPalantirDiversified AwayWIMFARMPalantirDiversified Away100%
0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between WIMFARM and Palantir is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Palantir Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Palantir Technologies 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 Palantir Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Palantir Technologies has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Palantir Technologies go up and down completely randomly.

Pair Corralation between WIMFARM SA and Palantir Technologies

Assuming the 90 days horizon WIMFARM SA is expected to generate 25.96 times less return on investment than Palantir Technologies. But when comparing it to its historical volatility, WIMFARM SA EO is 1.09 times less risky than Palantir Technologies. It trades about 0.01 of its potential returns per unit of risk. Palantir Technologies is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  3,827  in Palantir Technologies on October 31, 2024 and sell it today you would earn a total of  3,877  from holding Palantir Technologies or generate 101.31% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.33%
ValuesDaily Returns

WIMFARM SA EO  vs.  Palantir Technologies

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20020406080100
JavaScript chart by amCharts 3.21.156WW PTX
       Timeline  
WIMFARM SA EO 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days WIMFARM SA EO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, WIMFARM SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3.13.23.33.43.53.63.73.83.94
Palantir Technologies 

Risk-Adjusted Performance

20 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Palantir Technologies are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Palantir Technologies reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan404550556065707580

WIMFARM SA and Palantir Technologies Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-13.25-9.92-6.59-3.270.013.276.69.9313.26 0.0140.0160.0180.0200.0220.024
JavaScript chart by amCharts 3.21.156WW PTX
       Returns  

Pair Trading with WIMFARM SA and Palantir Technologies

The main advantage of trading using opposite WIMFARM SA and Palantir Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Palantir Technologies 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 Palantir Technologies will offset losses from the drop in Palantir Technologies' long position.
The idea behind WIMFARM SA EO and Palantir Technologies 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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