Correlation Between WiMi Hologram and Abits
Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and Abits 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 WiMi Hologram and Abits into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WiMi Hologram Cloud and Abits Group, you can compare the effects of market volatilities on WiMi Hologram and Abits 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 WiMi Hologram with a short position of Abits. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and Abits.
Diversification Opportunities for WiMi Hologram and Abits
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WiMi and Abits is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and Abits Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abits Group and WiMi Hologram 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 WiMi Hologram Cloud are associated (or correlated) with Abits. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abits Group has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and Abits go up and down completely randomly.
Pair Corralation between WiMi Hologram and Abits
Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 1.24 times more return on investment than Abits. However, WiMi Hologram is 1.24 times more volatile than Abits Group. It trades about 0.03 of its potential returns per unit of risk. Abits Group is currently generating about 0.02 per unit of risk. If you would invest 111.00 in WiMi Hologram Cloud on September 2, 2024 and sell it today you would lose (28.00) from holding WiMi Hologram Cloud or give up 25.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WiMi Hologram Cloud vs. Abits Group
Performance |
| Timeline |
| WiMi Hologram Cloud |
| Abits Group |
WiMi Hologram and Abits Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiMi Hologram and Abits
The main advantage of trading using opposite WiMi Hologram and Abits positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram position performs unexpectedly, Abits 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 Abits will offset losses from the drop in Abits' long position.| WiMi Hologram vs. National CineMedia | WiMi Hologram vs. Baosheng Media Group | WiMi Hologram vs. Townsquare Media | WiMi Hologram vs. Dolphin Entertainment |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |