Correlation Between Winfarm and NFL Biosciences

Can any of the company-specific risk be diversified away by investing in both Winfarm and NFL Biosciences 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 Winfarm and NFL Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Winfarm and NFL Biosciences SAS, you can compare the effects of market volatilities on Winfarm and NFL Biosciences 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 Winfarm with a short position of NFL Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winfarm and NFL Biosciences.

Diversification Opportunities for Winfarm and NFL Biosciences

0.0

Correlation Coefficient

Winfarm  NFL Biosciences

Pay attention - limited upside

The 3 months correlation between Winfarm and NFL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Winfarm and NFL Biosciences SAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFL Biosciences SAS and Winfarm 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 Winfarm are associated (or correlated) with NFL Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFL Biosciences SAS has no effect on the direction of Winfarm i.e., Winfarm and NFL Biosciences go up and down completely randomly.

Pair Corralation between Winfarm and NFL Biosciences

If you would invest (100.00) in NFL Biosciences SAS on October 1, 2024 and sell it today you would earn a total of  100.00  from holding NFL Biosciences SAS or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Winfarm  vs.  NFL Biosciences SAS

Winfarm

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Winfarm has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Winfarm is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

NFL Biosciences SAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NFL Biosciences SAS has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, NFL Biosciences is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Winfarm and NFL Biosciences

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

The idea behind Winfarm and NFL Biosciences SAS 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.