Correlation Between Neonode and MicroCloud Hologram
Can any of the company-specific risk be diversified away by investing in both Neonode and MicroCloud 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 Neonode and MicroCloud Hologram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neonode and MicroCloud Hologram, you can compare the effects of market volatilities on Neonode and MicroCloud 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 Neonode with a short position of MicroCloud Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neonode and MicroCloud Hologram.
Diversification Opportunities for Neonode and MicroCloud Hologram
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Neonode and MicroCloud is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Neonode and MicroCloud Hologram in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroCloud Hologram and Neonode 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 Neonode are associated (or correlated) with MicroCloud Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroCloud Hologram has no effect on the direction of Neonode i.e., Neonode and MicroCloud Hologram go up and down completely randomly.
Pair Corralation between Neonode and MicroCloud Hologram
Given the investment horizon of 90 days Neonode is expected to generate 0.46 times more return on investment than MicroCloud Hologram. However, Neonode is 2.15 times less risky than MicroCloud Hologram. It trades about 0.31 of its potential returns per unit of risk. MicroCloud Hologram is currently generating about -0.15 per unit of risk. If you would invest 797.00 in Neonode on November 18, 2024 and sell it today you would earn a total of 177.00 from holding Neonode or generate 22.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neonode vs. MicroCloud Hologram
Performance |
| Timeline |
| Neonode |
| MicroCloud Hologram |
Neonode and MicroCloud Hologram Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neonode and MicroCloud Hologram
The main advantage of trading using opposite Neonode and MicroCloud Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neonode position performs unexpectedly, MicroCloud 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 MicroCloud Hologram will offset losses from the drop in MicroCloud Hologram's long position.| Neonode vs. LightPath Technologies | Neonode vs. Methode Electronics | Neonode vs. OSI Systems | Neonode vs. Plexus Corp |
| MicroCloud Hologram vs. Plexus Corp | MicroCloud Hologram vs. OSI Systems | MicroCloud Hologram vs. CTS Corporation | MicroCloud Hologram vs. Benchmark Electronics |
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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