Correlation Between WIMFARM SA and Morgan Stanley
Can any of the company-specific risk be diversified away by investing in both WIMFARM SA and Morgan Stanley 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 Morgan Stanley 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 Morgan Stanley, you can compare the effects of market volatilities on WIMFARM SA and Morgan Stanley 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 Morgan Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIMFARM SA and Morgan Stanley.
Diversification Opportunities for WIMFARM SA and Morgan Stanley
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between WIMFARM and Morgan is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding WIMFARM SA EO and Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley 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 Morgan Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Stanley has no effect on the direction of WIMFARM SA i.e., WIMFARM SA and Morgan Stanley go up and down completely randomly.
Pair Corralation between WIMFARM SA and Morgan Stanley
Assuming the 90 days horizon WIMFARM SA EO is expected to generate 2.44 times more return on investment than Morgan Stanley. However, WIMFARM SA is 2.44 times more volatile than Morgan Stanley. It trades about 0.06 of its potential returns per unit of risk. Morgan Stanley is currently generating about 0.14 per unit of risk. If you would invest 359.00 in WIMFARM SA EO on September 5, 2025 and sell it today you would earn a total of 39.00 from holding WIMFARM SA EO or generate 10.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIMFARM SA EO vs. Morgan Stanley
Performance |
| Timeline |
| WIMFARM SA EO |
| Morgan Stanley |
WIMFARM SA and Morgan Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIMFARM SA and Morgan Stanley
The main advantage of trading using opposite WIMFARM SA and Morgan Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIMFARM SA position performs unexpectedly, Morgan Stanley 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 Morgan Stanley will offset losses from the drop in Morgan Stanley's long position.| WIMFARM SA vs. Hope Education Group | WIMFARM SA vs. Thai Beverage Public | WIMFARM SA vs. United Breweries Co | WIMFARM SA vs. China Resources Beer |
| Morgan Stanley vs. Nanjing Panda Electronics | Morgan Stanley vs. STMICROELECTRONICS | Morgan Stanley vs. Agricultural Bank of | Morgan Stanley vs. WIMFARM SA EO |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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