Correlation Between MicroCloud Hologram and EMagin
Can any of the company-specific risk be diversified away by investing in both MicroCloud Hologram and EMagin 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 MicroCloud Hologram and EMagin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MicroCloud Hologram and EMagin, you can compare the effects of market volatilities on MicroCloud Hologram and EMagin 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 MicroCloud Hologram with a short position of EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of MicroCloud Hologram and EMagin.
Diversification Opportunities for MicroCloud Hologram and EMagin
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between MicroCloud and EMagin is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding MicroCloud Hologram and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin and MicroCloud Hologram 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 MicroCloud Hologram are associated (or correlated) with EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of MicroCloud Hologram i.e., MicroCloud Hologram and EMagin go up and down completely randomly.
Pair Corralation between MicroCloud Hologram and EMagin
Given the investment horizon of 90 days MicroCloud Hologram is expected to generate 10.17 times more return on investment than EMagin. However, MicroCloud Hologram is 10.17 times more volatile than EMagin. It trades about 0.03 of its potential returns per unit of risk. EMagin is currently generating about 0.14 per unit of risk. If you would invest 51,000 in MicroCloud Hologram on August 27, 2024 and sell it today you would lose (50,786) from holding MicroCloud Hologram or give up 99.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.85% |
| Values | Daily Returns |
MicroCloud Hologram vs. EMagin
Performance |
| Timeline |
| MicroCloud Hologram |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MicroCloud Hologram and EMagin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MicroCloud Hologram and EMagin
The main advantage of trading using opposite MicroCloud Hologram and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroCloud Hologram position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin's long position.| MicroCloud Hologram vs. Plexus Corp | MicroCloud Hologram vs. Jabil Circuit | MicroCloud Hologram vs. Sanmina | MicroCloud Hologram vs. Methode Electronics |
| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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