Correlation Between Weibo Corp and 50249AAF0
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By analyzing existing cross correlation between Weibo Corp and LYB 125 01 OCT 25, you can compare the effects of market volatilities on Weibo Corp and 50249AAF0 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 50249AAF0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and 50249AAF0.
Diversification Opportunities for Weibo Corp and 50249AAF0
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Weibo and 50249AAF0 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and LYB 125 01 OCT 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LYB 125 01 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 50249AAF0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LYB 125 01 has no effect on the direction of Weibo Corp i.e., Weibo Corp and 50249AAF0 go up and down completely randomly.
Pair Corralation between Weibo Corp and 50249AAF0
Allowing for the 90-day total investment horizon Weibo Corp is expected to generate 4.54 times more return on investment than 50249AAF0. However, Weibo Corp is 4.54 times more volatile than LYB 125 01 OCT 25. It trades about 0.12 of its potential returns per unit of risk. LYB 125 01 OCT 25 is currently generating about -0.05 per unit of risk. If you would invest 735.00 in Weibo Corp on August 31, 2024 and sell it today you would earn a total of 211.00 from holding Weibo Corp or generate 28.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Weibo Corp vs. LYB 125 01 OCT 25
Performance |
| Timeline |
| Weibo Corp |
| LYB 125 01 |
Weibo Corp and 50249AAF0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and 50249AAF0
The main advantage of trading using opposite Weibo Corp and 50249AAF0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, 50249AAF0 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 50249AAF0 will offset losses from the drop in 50249AAF0'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 |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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