Correlation Between BAIYU Holdings and WiMi Hologram
Can any of the company-specific risk be diversified away by investing in both BAIYU Holdings and WiMi Hologram 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 BAIYU Holdings and WiMi Hologram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BAIYU Holdings and WiMi Hologram Cloud, you can compare the effects of market volatilities on BAIYU Holdings and WiMi Hologram 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 BAIYU Holdings with a short position of WiMi Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIYU Holdings and WiMi Hologram.
Diversification Opportunities for BAIYU Holdings and WiMi Hologram
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BAIYU and WiMi is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding BAIYU Holdings and WiMi Hologram Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WiMi Hologram Cloud and BAIYU Holdings 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 BAIYU Holdings are associated (or correlated) with WiMi Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WiMi Hologram Cloud has no effect on the direction of BAIYU Holdings i.e., BAIYU Holdings and WiMi Hologram go up and down completely randomly.
Pair Corralation between BAIYU Holdings and WiMi Hologram
Considering the 90-day investment horizon BAIYU Holdings is expected to under-perform the WiMi Hologram. In addition to that, BAIYU Holdings is 2.89 times more volatile than WiMi Hologram Cloud. It trades about -0.31 of its total potential returns per unit of risk. WiMi Hologram Cloud is currently generating about 0.06 per unit of volatility. If you would invest 74.00 in WiMi Hologram Cloud on September 2, 2024 and sell it today you would earn a total of 9.00 from holding WiMi Hologram Cloud or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.63% |
| Values | Daily Returns |
BAIYU Holdings vs. WiMi Hologram Cloud
Performance |
| Timeline |
| BAIYU Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| WiMi Hologram Cloud |
BAIYU Holdings and WiMi Hologram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIYU Holdings and WiMi Hologram
The main advantage of trading using opposite BAIYU Holdings and WiMi Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIYU Holdings position performs unexpectedly, WiMi Hologram 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 WiMi Hologram will offset losses from the drop in WiMi Hologram's long position.| BAIYU Holdings vs. WiMi Hologram Cloud | BAIYU Holdings vs. Wicket Gaming AB | BAIYU Holdings vs. Digi International | BAIYU Holdings vs. Radcom |
| WiMi Hologram vs. National CineMedia | WiMi Hologram vs. Baosheng Media Group | WiMi Hologram vs. Townsquare Media | WiMi Hologram vs. Dolphin Entertainment |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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