Correlation Between ESGEN Acquisition and WiMi Hologram
Can any of the company-specific risk be diversified away by investing in both ESGEN Acquisition 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 ESGEN Acquisition and WiMi Hologram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ESGEN Acquisition Corp and WiMi Hologram Cloud, you can compare the effects of market volatilities on ESGEN Acquisition 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 ESGEN Acquisition with a short position of WiMi Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of ESGEN Acquisition and WiMi Hologram.
Diversification Opportunities for ESGEN Acquisition and WiMi Hologram
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ESGEN and WiMi is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ESGEN Acquisition Corp 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 ESGEN Acquisition 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 ESGEN Acquisition Corp 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 ESGEN Acquisition i.e., ESGEN Acquisition and WiMi Hologram go up and down completely randomly.
Pair Corralation between ESGEN Acquisition and WiMi Hologram
Assuming the 90 days horizon ESGEN Acquisition is expected to generate 4.22 times less return on investment than WiMi Hologram. But when comparing it to its historical volatility, ESGEN Acquisition Corp is 30.29 times less risky than WiMi Hologram. It trades about 0.18 of its potential returns per unit of risk. WiMi Hologram Cloud is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 111.00 in WiMi Hologram Cloud on September 2, 2024 and sell it today you would lose (28.00) from holding WiMi Hologram Cloud or give up 25.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 8.06% |
| Values | Daily Returns |
ESGEN Acquisition Corp vs. WiMi Hologram Cloud
Performance |
| Timeline |
| ESGEN Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| WiMi Hologram Cloud |
ESGEN Acquisition and WiMi Hologram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ESGEN Acquisition and WiMi Hologram
The main advantage of trading using opposite ESGEN Acquisition and WiMi Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ESGEN Acquisition 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.| ESGEN Acquisition vs. Stepan Company | ESGEN Acquisition vs. Cardinal Health | ESGEN Acquisition vs. Xtant Medical Holdings | ESGEN Acquisition vs. Aquestive Therapeutics |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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