Correlation Between Weibo Corp and Loop Media
Can any of the company-specific risk be diversified away by investing in both Weibo Corp and Loop Media 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 Weibo Corp and Loop Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and Loop Media, you can compare the effects of market volatilities on Weibo Corp and Loop Media 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 Weibo Corp with a short position of Loop Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and Loop Media.
Diversification Opportunities for Weibo Corp and Loop Media
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Weibo and Loop is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and Loop Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Media and Weibo Corp 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 Weibo Corp are associated (or correlated) with Loop Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Media has no effect on the direction of Weibo Corp i.e., Weibo Corp and Loop Media go up and down completely randomly.
Pair Corralation between Weibo Corp and Loop Media
If you would invest 5.30 in Loop Media on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Loop Media or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Weibo Corp vs. Loop Media
Performance |
| Timeline |
| Weibo Corp |
| Loop Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Weibo Corp and Loop Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and Loop Media
The main advantage of trading using opposite Weibo Corp and Loop Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, Loop Media 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 Loop Media will offset losses from the drop in Loop Media's long position.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
| Loop Media vs. Acco Brands | Loop Media vs. Lion One Metals | Loop Media vs. Afya | Loop Media vs. Aerofoam Metals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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