Correlation Between WiMi Hologram and Li Auto
Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and Li Auto 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 Li Auto 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 Li Auto, you can compare the effects of market volatilities on WiMi Hologram and Li Auto 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 Li Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and Li Auto.
Diversification Opportunities for WiMi Hologram and Li Auto
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WiMi and Li Auto is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and Li Auto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Li Auto 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 Li Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Li Auto has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and Li Auto go up and down completely randomly.
Pair Corralation between WiMi Hologram and Li Auto
Given the investment horizon of 90 days WiMi Hologram Cloud is expected to under-perform the Li Auto. In addition to that, WiMi Hologram is 4.14 times more volatile than Li Auto. It trades about -0.18 of its total potential returns per unit of risk. Li Auto is currently generating about -0.43 per unit of volatility. If you would invest 2,756 in Li Auto on January 9, 2025 and sell it today you would lose (777.00) from holding Li Auto or give up 28.19% 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. Li Auto
Performance |
| Timeline |
| WiMi Hologram Cloud |
| Li Auto |
WiMi Hologram and Li Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiMi Hologram and Li Auto
The main advantage of trading using opposite WiMi Hologram and Li Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram position performs unexpectedly, Li Auto 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 Li Auto will offset losses from the drop in Li Auto's 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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