Correlation Between Oriental Culture and IPower
Can any of the company-specific risk be diversified away by investing in both Oriental Culture and IPower 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 Oriental Culture and IPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Culture Holding and iPower Inc, you can compare the effects of market volatilities on Oriental Culture and IPower 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 Oriental Culture with a short position of IPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Culture and IPower.
Diversification Opportunities for Oriental Culture and IPower
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oriental and IPower is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Culture Holding and iPower Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iPower Inc and Oriental Culture 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 Oriental Culture Holding are associated (or correlated) with IPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iPower Inc has no effect on the direction of Oriental Culture i.e., Oriental Culture and IPower go up and down completely randomly.
Pair Corralation between Oriental Culture and IPower
Considering the 90-day investment horizon Oriental Culture is expected to generate 2.3 times less return on investment than IPower. But when comparing it to its historical volatility, Oriental Culture Holding is 1.56 times less risky than IPower. It trades about 0.04 of its potential returns per unit of risk. iPower Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 62.00 in iPower Inc on November 9, 2024 and sell it today you would earn a total of 9.00 from holding iPower Inc or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Culture Holding vs. iPower Inc
Performance |
| Timeline |
| Oriental Culture Holding |
| iPower Inc |
Oriental Culture and IPower Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Culture and IPower
The main advantage of trading using opposite Oriental Culture and IPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Culture position performs unexpectedly, IPower 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 IPower will offset losses from the drop in IPower's long position.| Oriental Culture vs. Hour Loop | Oriental Culture vs. Jowell Global | Oriental Culture vs. Qurate Retail Series | Oriental Culture vs. Emerge Commerce |
| IPower vs. Hour Loop | IPower vs. Qurate Retail Series | IPower vs. MOGU Inc | IPower vs. Meiwu Technology Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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