Correlation Between WIMFARM SA and G8 EDUCATION

Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and G8 EDUCATION 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 G8 EDUCATION 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 G8 EDUCATION, you can compare the effects of market volatilities on WIMFARM SA and G8 EDUCATION 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 G8 EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and G8 EDUCATION.

Diversification Opportunities for WIMFARM SA and G8 EDUCATION

0.15

Correlation Coefficient

WIMFARM SA  G8 EDUCATION

Average diversification

The 3 months correlation between WIMFARM and 3EAG is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and G8 EDUCATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G8 EDUCATION 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 G8 EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G8 EDUCATION has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and G8 EDUCATION go up and down completely randomly.

Pair Corralation between WIMFARM SA and G8 EDUCATION

Assuming the 90 days horizon WIMFARM SA EO is expected to generate 1.1 times more return on investment than G8 EDUCATION. However, WIMFARM SA is 1.1 times more volatile than G8 EDUCATION. It trades about 0.06 of its potential returns per unit of risk. G8 EDUCATION is currently generating about -0.25 per unit of risk. If you would invest  342.00  in WIMFARM SA EO on April 22, 2025 and sell it today you would earn a total of  26.00  from holding WIMFARM SA EO or generate 7.6% 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.  G8 EDUCATION

WIMFARM SA EO

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in WIMFARM SA EO are ranked lower than 4 (%) 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 August 2025.

G8 EDUCATION

Risk-Adjusted Performance

Very Weak

Over the last 90 days G8 EDUCATION has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with WIMFARM SA and G8 EDUCATION

The main advantage of trading using opposite WIMFARM SA and G8 EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, G8 EDUCATION 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 G8 EDUCATION will offset losses from the drop in G8 EDUCATION's long position.

The idea behind WIMFARM SA EO and G8 EDUCATION 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.