Correlation Between X Legend and MacroWell OMG
Can any of the company-specific risk be diversified away by investing in both X Legend and MacroWell OMG 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 X Legend and MacroWell OMG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between X Legend Entertainment Co and MacroWell OMG Digital, you can compare the effects of market volatilities on X Legend and MacroWell OMG 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 X Legend with a short position of MacroWell OMG. Check out your portfolio center. Please also check ongoing floating volatility patterns of X Legend and MacroWell OMG.
Diversification Opportunities for X Legend and MacroWell OMG
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 4994 and MacroWell is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding X Legend Entertainment Co and MacroWell OMG Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MacroWell OMG Digital and X Legend 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 X Legend Entertainment Co are associated (or correlated) with MacroWell OMG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MacroWell OMG Digital has no effect on the direction of X Legend i.e., X Legend and MacroWell OMG go up and down completely randomly.
Pair Corralation between X Legend and MacroWell OMG
Assuming the 90 days trading horizon X Legend Entertainment Co is expected to generate 1.42 times more return on investment than MacroWell OMG. However, X Legend is 1.42 times more volatile than MacroWell OMG Digital. It trades about 0.07 of its potential returns per unit of risk. MacroWell OMG Digital is currently generating about 0.02 per unit of risk. If you would invest 4,715 in X Legend Entertainment Co on August 31, 2024 and sell it today you would earn a total of 5,985 from holding X Legend Entertainment Co or generate 126.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
X Legend Entertainment Co vs. MacroWell OMG Digital
Performance |
| Timeline |
| X Legend Entertainment |
| MacroWell OMG Digital |
X Legend and MacroWell OMG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X Legend and MacroWell OMG
The main advantage of trading using opposite X Legend and MacroWell OMG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X Legend position performs unexpectedly, MacroWell OMG 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 MacroWell OMG will offset losses from the drop in MacroWell OMG's long position.| X Legend vs. Abnova Taiwan Corp | X Legend vs. Cheng Mei Materials | X Legend vs. BizLink Holding | X Legend vs. Lemtech Holdings Co |
| MacroWell OMG vs. Gamania Digital Entertainment | MacroWell OMG vs. Soft World International | MacroWell OMG vs. Softstar Entertainment | MacroWell OMG vs. X Legend Entertainment Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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