Correlation Between WiMi Hologram and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and Amkor Technology 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 Amkor Technology 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 Amkor Technology, you can compare the effects of market volatilities on WiMi Hologram and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and Amkor Technology.
Diversification Opportunities for WiMi Hologram and Amkor Technology
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WiMi and Amkor is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and Amkor Technology go up and down completely randomly.
Pair Corralation between WiMi Hologram and Amkor Technology
Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 1.25 times more return on investment than Amkor Technology. However, WiMi Hologram is 1.25 times more volatile than Amkor Technology. It trades about -0.16 of its potential returns per unit of risk. Amkor Technology is currently generating about -0.2 per unit of risk. If you would invest 89.00 in WiMi Hologram Cloud on August 29, 2024 and sell it today you would lose (10.00) from holding WiMi Hologram Cloud or give up 11.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WiMi Hologram Cloud vs. Amkor Technology
Performance |
| Timeline |
| WiMi Hologram Cloud |
| Amkor Technology |
WiMi Hologram and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiMi Hologram and Amkor Technology
The main advantage of trading using opposite WiMi Hologram and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| WiMi Hologram vs. ADTRAN Inc | WiMi Hologram vs. Belden Inc | WiMi Hologram vs. ADC Therapeutics SA | WiMi Hologram vs. Comtech Telecommunications Corp |
| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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