Correlation Between WiMi Hologram and Stepan
Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and Stepan 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 Stepan 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 Stepan Company, you can compare the effects of market volatilities on WiMi Hologram and Stepan 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 Stepan. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and Stepan.
Diversification Opportunities for WiMi Hologram and Stepan
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between WiMi and Stepan is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and Stepan Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stepan Company 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 Stepan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stepan Company has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and Stepan go up and down completely randomly.
Pair Corralation between WiMi Hologram and Stepan
Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 2.87 times more return on investment than Stepan. However, WiMi Hologram is 2.87 times more volatile than Stepan Company. It trades about 0.03 of its potential returns per unit of risk. Stepan Company is currently generating about -0.17 per unit of risk. If you would invest 86.00 in WiMi Hologram Cloud on September 12, 2024 and sell it today you would earn a total of 1.00 from holding WiMi Hologram Cloud or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WiMi Hologram Cloud vs. Stepan Company
Performance |
| Timeline |
| WiMi Hologram Cloud |
| Stepan Company |
WiMi Hologram and Stepan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiMi Hologram and Stepan
The main advantage of trading using opposite WiMi Hologram and Stepan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram position performs unexpectedly, Stepan 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 Stepan will offset losses from the drop in Stepan'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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |