Correlation Between WiMi Hologram and Omnicom
Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and Omnicom 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 Omnicom 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 Omnicom Group, you can compare the effects of market volatilities on WiMi Hologram and Omnicom 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 Omnicom. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and Omnicom.
Diversification Opportunities for WiMi Hologram and Omnicom
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WiMi and Omnicom is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and Omnicom Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Omnicom 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 Omnicom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Omnicom Group has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and Omnicom go up and down completely randomly.
Pair Corralation between WiMi Hologram and Omnicom
Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 8.44 times more return on investment than Omnicom. However, WiMi Hologram is 8.44 times more volatile than Omnicom Group. It trades about 0.12 of its potential returns per unit of risk. Omnicom Group is currently generating about -0.15 per unit of risk. If you would invest 77.00 in WiMi Hologram Cloud on October 19, 2024 and sell it today you would earn a total of 34.00 from holding WiMi Hologram Cloud or generate 44.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WiMi Hologram Cloud vs. Omnicom Group
Performance |
| Timeline |
| WiMi Hologram Cloud |
| Omnicom Group |
WiMi Hologram and Omnicom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiMi Hologram and Omnicom
The main advantage of trading using opposite WiMi Hologram and Omnicom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram position performs unexpectedly, Omnicom 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 Omnicom will offset losses from the drop in Omnicom'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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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