Correlation Between WiMi Hologram and ASE Industrial
Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and ASE Industrial 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 ASE Industrial 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 ASE Industrial Holding, you can compare the effects of market volatilities on WiMi Hologram and ASE Industrial 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 ASE Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and ASE Industrial.
Diversification Opportunities for WiMi Hologram and ASE Industrial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between WiMi and ASE is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and ASE Industrial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASE Industrial Holding 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 ASE Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASE Industrial Holding has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and ASE Industrial go up and down completely randomly.
Pair Corralation between WiMi Hologram and ASE Industrial
Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 2.22 times more return on investment than ASE Industrial. However, WiMi Hologram is 2.22 times more volatile than ASE Industrial Holding. It trades about 0.11 of its potential returns per unit of risk. ASE Industrial Holding is currently generating about 0.15 per unit of risk. If you would invest 84.00 in WiMi Hologram Cloud on September 13, 2024 and sell it today you would earn a total of 7.00 from holding WiMi Hologram Cloud or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
WiMi Hologram Cloud vs. ASE Industrial Holding
Performance |
| Timeline |
| WiMi Hologram Cloud |
| ASE Industrial Holding |
WiMi Hologram and ASE Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiMi Hologram and ASE Industrial
The main advantage of trading using opposite WiMi Hologram and ASE Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram position performs unexpectedly, ASE Industrial 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 ASE Industrial will offset losses from the drop in ASE Industrial's long position.| WiMi Hologram vs. National CineMedia | WiMi Hologram vs. Baosheng Media Group | WiMi Hologram vs. Townsquare Media | WiMi Hologram vs. Dolphin Entertainment |
| ASE Industrial vs. United Microelectronics | ASE Industrial vs. Amkor Technology | ASE Industrial vs. Himax Technologies | ASE Industrial vs. Chunghwa Telecom 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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