Correlation Between Hour Loop and ATRenew
Can any of the company-specific risk be diversified away by investing in both Hour Loop and ATRenew 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 Hour Loop and ATRenew into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hour Loop and ATRenew Inc DRC, you can compare the effects of market volatilities on Hour Loop and ATRenew 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 Hour Loop with a short position of ATRenew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hour Loop and ATRenew.
Diversification Opportunities for Hour Loop and ATRenew
Modest diversification
The 3 months correlation between Hour and ATRenew is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hour Loop and ATRenew Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRenew Inc DRC and Hour Loop 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 Hour Loop are associated (or correlated) with ATRenew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRenew Inc DRC has no effect on the direction of Hour Loop i.e., Hour Loop and ATRenew go up and down completely randomly.
Pair Corralation between Hour Loop and ATRenew
Given the investment horizon of 90 days Hour Loop is expected to generate 2.39 times less return on investment than ATRenew. In addition to that, Hour Loop is 1.07 times more volatile than ATRenew Inc DRC. It trades about 0.02 of its total potential returns per unit of risk. ATRenew Inc DRC is currently generating about 0.06 per unit of volatility. If you would invest 177.00 in ATRenew Inc DRC on August 27, 2024 and sell it today you would earn a total of 106.00 from holding ATRenew Inc DRC or generate 59.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hour Loop vs. ATRenew Inc DRC
Performance |
| Timeline |
| Hour Loop |
| ATRenew Inc DRC |
Hour Loop and ATRenew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hour Loop and ATRenew
The main advantage of trading using opposite Hour Loop and ATRenew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hour Loop position performs unexpectedly, ATRenew 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 ATRenew will offset losses from the drop in ATRenew's long position.| Hour Loop vs. Qurate Retail Series | Hour Loop vs. iPower Inc | Hour Loop vs. MOGU Inc | Hour Loop vs. Qurate Retail |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |