Correlation Between IPower and WEBUY GLOBAL
Can any of the company-specific risk be diversified away by investing in both IPower and WEBUY GLOBAL 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 IPower and WEBUY GLOBAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iPower Inc and WEBUY GLOBAL LTD, you can compare the effects of market volatilities on IPower and WEBUY GLOBAL 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 IPower with a short position of WEBUY GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of IPower and WEBUY GLOBAL.
Diversification Opportunities for IPower and WEBUY GLOBAL
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IPower and WEBUY is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding iPower Inc and WEBUY GLOBAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEBUY GLOBAL LTD and IPower 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 iPower Inc are associated (or correlated) with WEBUY GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEBUY GLOBAL LTD has no effect on the direction of IPower i.e., IPower and WEBUY GLOBAL go up and down completely randomly.
Pair Corralation between IPower and WEBUY GLOBAL
Considering the 90-day investment horizon iPower Inc is expected to generate 0.84 times more return on investment than WEBUY GLOBAL. However, iPower Inc is 1.19 times less risky than WEBUY GLOBAL. It trades about 0.05 of its potential returns per unit of risk. WEBUY GLOBAL LTD is currently generating about -0.04 per unit of risk. If you would invest 54.00 in iPower Inc on August 24, 2024 and sell it today you would earn a total of 16.00 from holding iPower Inc or generate 29.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.85% |
| Values | Daily Returns |
iPower Inc vs. WEBUY GLOBAL LTD
Performance |
| Timeline |
| iPower Inc |
| WEBUY GLOBAL LTD |
IPower and WEBUY GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IPower and WEBUY GLOBAL
The main advantage of trading using opposite IPower and WEBUY GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IPower position performs unexpectedly, WEBUY GLOBAL 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 WEBUY GLOBAL will offset losses from the drop in WEBUY GLOBAL's long position.| IPower vs. Hour Loop | IPower vs. Qurate Retail Series | IPower vs. MOGU Inc | IPower vs. Meiwu Technology Co |
| WEBUY GLOBAL vs. AKA Brands Holding | WEBUY GLOBAL vs. iPower Inc | WEBUY GLOBAL vs. Oriental Culture Holding | WEBUY GLOBAL vs. Kidpik Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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