Correlation Between Oriental Culture and WISH Old
Can any of the company-specific risk be diversified away by investing in both Oriental Culture and WISH Old 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 WISH Old 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 WISH Old, you can compare the effects of market volatilities on Oriental Culture and WISH Old 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 WISH Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Culture and WISH Old.
Diversification Opportunities for Oriental Culture and WISH Old
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Oriental and WISH is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Culture Holding and WISH Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WISH Old 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 WISH Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WISH Old has no effect on the direction of Oriental Culture i.e., Oriental Culture and WISH Old go up and down completely randomly.
Pair Corralation between Oriental Culture and WISH Old
Considering the 90-day investment horizon Oriental Culture Holding is expected to generate 1.12 times more return on investment than WISH Old. However, Oriental Culture is 1.12 times more volatile than WISH Old. It trades about 0.01 of its potential returns per unit of risk. WISH Old is currently generating about -0.02 per unit of risk. If you would invest 300.00 in Oriental Culture Holding on August 29, 2024 and sell it today you would lose (184.00) from holding Oriental Culture Holding or give up 61.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 79.6% |
| Values | Daily Returns |
Oriental Culture Holding vs. WISH Old
Performance |
| Timeline |
| Oriental Culture Holding |
| WISH Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oriental Culture and WISH Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Culture and WISH Old
The main advantage of trading using opposite Oriental Culture and WISH Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Culture position performs unexpectedly, WISH Old 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 WISH Old will offset losses from the drop in WISH Old's long position.| Oriental Culture vs. MDJM | Oriental Culture vs. Southcorp Capital | Oriental Culture vs. Frp Holdings Ord | Oriental Culture vs. Ucommune International |
| WISH Old vs. Global E Online | WISH Old vs. PDD Holdings | WISH Old vs. Sea | WISH Old vs. Vipshop Holdings Limited |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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