Correlation Between IQIYI and Luokung Technology
Can any of the company-specific risk be diversified away by investing in both IQIYI and Luokung Technology 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 IQIYI and Luokung Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iQIYI Inc and Luokung Technology Corp, you can compare the effects of market volatilities on IQIYI and Luokung Technology 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 IQIYI with a short position of Luokung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of IQIYI and Luokung Technology.
Diversification Opportunities for IQIYI and Luokung Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between IQIYI and Luokung is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding iQIYI Inc and Luokung Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luokung Technology Corp and IQIYI 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 iQIYI Inc are associated (or correlated) with Luokung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luokung Technology Corp has no effect on the direction of IQIYI i.e., IQIYI and Luokung Technology go up and down completely randomly.
Pair Corralation between IQIYI and Luokung Technology
Allowing for the 90-day total investment horizon iQIYI Inc is expected to generate 0.62 times more return on investment than Luokung Technology. However, iQIYI Inc is 1.62 times less risky than Luokung Technology. It trades about -0.04 of its potential returns per unit of risk. Luokung Technology Corp is currently generating about -0.07 per unit of risk. If you would invest 545.00 in iQIYI Inc on October 9, 2024 and sell it today you would lose (346.00) from holding iQIYI Inc or give up 63.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iQIYI Inc vs. Luokung Technology Corp
Performance |
| Timeline |
| iQIYI Inc |
| Luokung Technology Corp |
IQIYI and Luokung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IQIYI and Luokung Technology
The main advantage of trading using opposite IQIYI and Luokung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IQIYI position performs unexpectedly, Luokung Technology 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 Luokung Technology will offset losses from the drop in Luokung Technology's long position.The idea behind iQIYI Inc and Luokung Technology Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Luokung Technology vs. Auddia Inc | Luokung Technology vs. Freight Technologies | Luokung Technology vs. CXApp Inc | Luokung Technology vs. Trust Stamp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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