Correlation Between Weibo Corp and NVIDIA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Weibo Corp and NVIDIA 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 NVIDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and NVIDIA PORATION, you can compare the effects of market volatilities on Weibo Corp and NVIDIA 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 NVIDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and NVIDIA.

Diversification Opportunities for Weibo Corp and NVIDIA

-0.46
  Correlation Coefficient

Very good diversification

The 3 months correlation between Weibo and NVIDIA is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and NVIDIA PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NVIDIA PORATION 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 NVIDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NVIDIA PORATION has no effect on the direction of Weibo Corp i.e., Weibo Corp and NVIDIA go up and down completely randomly.

Pair Corralation between Weibo Corp and NVIDIA

Allowing for the 90-day total investment horizon Weibo Corp is expected to generate 7.4 times more return on investment than NVIDIA. However, Weibo Corp is 7.4 times more volatile than NVIDIA PORATION. It trades about 0.12 of its potential returns per unit of risk. NVIDIA PORATION is currently generating about -0.13 per unit of risk. If you would invest  735.00  in Weibo Corp on September 2, 2024 and sell it today you would earn a total of  225.00  from holding Weibo Corp or generate 30.61% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy96.88%
ValuesDaily Returns

Weibo Corp  vs.  NVIDIA PORATION

 Performance 
       Timeline  
Weibo Corp 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Weibo Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Weibo Corp sustained solid returns over the last few months and may actually be approaching a breakup point.
NVIDIA PORATION 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days NVIDIA PORATION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, NVIDIA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Weibo Corp and NVIDIA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Weibo Corp and NVIDIA

The main advantage of trading using opposite Weibo Corp and NVIDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, NVIDIA 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 NVIDIA will offset losses from the drop in NVIDIA'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
The idea behind Weibo Corp and NVIDIA PORATION pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
NVIDIA vs. World Houseware Limited
NVIDIA vs. Awilco Drilling PLC
NVIDIA vs. Delek Drilling
NVIDIA vs. Eastern 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 Stocks Directory module to find actively traded stocks across global markets.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY