Correlation Between WiMi Hologram and Stagwell
Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and Stagwell 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 Stagwell 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 Stagwell, you can compare the effects of market volatilities on WiMi Hologram and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and Stagwell.
Diversification Opportunities for WiMi Hologram and Stagwell
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WiMi and Stagwell is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and Stagwell go up and down completely randomly.
Pair Corralation between WiMi Hologram and Stagwell
Given the investment horizon of 90 days WiMi Hologram Cloud is expected to under-perform the Stagwell. In addition to that, WiMi Hologram is 1.06 times more volatile than Stagwell. It trades about -0.08 of its total potential returns per unit of risk. Stagwell is currently generating about 0.4 per unit of volatility. If you would invest 627.00 in Stagwell on August 27, 2024 and sell it today you would earn a total of 155.00 from holding Stagwell or generate 24.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WiMi Hologram Cloud vs. Stagwell
Performance |
| Timeline |
| WiMi Hologram Cloud |
| Stagwell |
WiMi Hologram and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiMi Hologram and Stagwell
The main advantage of trading using opposite WiMi Hologram and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell's long position.| WiMi Hologram vs. National CineMedia | WiMi Hologram vs. Baosheng Media Group | WiMi Hologram vs. Townsquare Media | WiMi Hologram vs. Dolphin Entertainment |
| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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