Correlation Between InMode and Wilmar International
Can any of the company-specific risk be diversified away by investing in both InMode and Wilmar International 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 InMode and Wilmar International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InMode and Wilmar International, you can compare the effects of market volatilities on InMode and Wilmar International 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 InMode with a short position of Wilmar International. Check out your portfolio center. Please also check ongoing floating volatility patterns of InMode and Wilmar International.
Diversification Opportunities for InMode and Wilmar International
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between InMode and Wilmar is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding InMode and Wilmar International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmar International and InMode 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 InMode are associated (or correlated) with Wilmar International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmar International has no effect on the direction of InMode i.e., InMode and Wilmar International go up and down completely randomly.
Pair Corralation between InMode and Wilmar International
Given the investment horizon of 90 days InMode is expected to generate 1.22 times less return on investment than Wilmar International. In addition to that, InMode is 1.4 times more volatile than Wilmar International. It trades about 0.06 of its total potential returns per unit of risk. Wilmar International is currently generating about 0.11 per unit of volatility. If you would invest 2,284 in Wilmar International on December 28, 2024 and sell it today you would earn a total of 205.00 from holding Wilmar International or generate 8.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.36% |
Values | Daily Returns |
InMode vs. Wilmar International
Performance |
Timeline |
InMode |
Wilmar International |
InMode and Wilmar International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with InMode and Wilmar International
The main advantage of trading using opposite InMode and Wilmar International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InMode position performs unexpectedly, Wilmar International 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 Wilmar International will offset losses from the drop in Wilmar International's long position.InMode vs. TransMedics Group | InMode vs. Inspire Medical Systems | InMode vs. Insulet | InMode vs. DexCom Inc |
Wilmar International vs. Wilmar International Limited | Wilmar International vs. Wesfarmers Ltd ADR | Wilmar International vs. United Overseas Bank | Wilmar International vs. Kerry Group PLC |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |