Correlation Between WiMi Hologram and National CineMedia
Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and National CineMedia 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 National CineMedia 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 National CineMedia, you can compare the effects of market volatilities on WiMi Hologram and National CineMedia 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 National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and National CineMedia.
Diversification Opportunities for WiMi Hologram and National CineMedia
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between WiMi and National is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia 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 National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and National CineMedia go up and down completely randomly.
Pair Corralation between WiMi Hologram and National CineMedia
Given the investment horizon of 90 days WiMi Hologram Cloud is expected to under-perform the National CineMedia. But the stock apears to be less risky and, when comparing its historical volatility, WiMi Hologram Cloud is 1.06 times less risky than National CineMedia. The stock trades about -0.08 of its potential returns per unit of risk. The National CineMedia is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 720.00 in National CineMedia on August 27, 2024 and sell it today you would lose (32.00) from holding National CineMedia or give up 4.44% 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. National CineMedia
Performance |
| Timeline |
| WiMi Hologram Cloud |
| National CineMedia |
WiMi Hologram and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiMi Hologram and National CineMedia
The main advantage of trading using opposite WiMi Hologram and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia'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 |
| National CineMedia vs. Mirriad Advertising plc | National CineMedia vs. INEO Tech Corp | National CineMedia vs. Innovid Corp | National CineMedia vs. Townsquare Media |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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