Correlation Between WIMFARM SA and CSL

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

Diversification Opportunities for WIMFARM SA and CSL

0.14

Correlation Coefficient

WIMFARM SA  CSL

Average diversification

The 3 months correlation between WIMFARM and CSL is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and CSL LTD SPONADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSL LTD SPONADR 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 CSL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSL LTD SPONADR has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and CSL go up and down completely randomly.

Pair Corralation between WIMFARM SA and CSL

Assuming the 90 days horizon WIMFARM SA EO is expected to generate 0.49 times more return on investment than CSL. However, WIMFARM SA EO is 2.05 times less risky than CSL. It trades about 0.16 of its potential returns per unit of risk. CSL LTD SPONADR is currently generating about -0.09 per unit of risk. If you would invest  351.00  in WIMFARM SA EO on May 28, 2025 and sell it today you would earn a total of  44.00  from holding WIMFARM SA EO or generate 12.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

WIMFARM SA EO  vs.  CSL LTD SPONADR

WIMFARM SA EO

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WIMFARM SA EO are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, WIMFARM SA may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CSL LTD SPONADR

Risk-Adjusted Performance

Weakest

Over the last 90 days CSL LTD SPONADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward-looking indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with WIMFARM SA and CSL

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

The idea behind WIMFARM SA EO and CSL LTD SPONADR 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.