Correlation Between Wirecard and Liquid Avatar
Can any of the company-specific risk be diversified away by investing in both Wirecard and Liquid Avatar 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 Wirecard and Liquid Avatar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wirecard AG and Liquid Avatar Technologies, you can compare the effects of market volatilities on Wirecard and Liquid Avatar 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 Wirecard with a short position of Liquid Avatar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wirecard and Liquid Avatar.
Diversification Opportunities for Wirecard and Liquid Avatar
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wirecard and Liquid is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Wirecard AG and Liquid Avatar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liquid Avatar Techno and Wirecard 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 Wirecard AG are associated (or correlated) with Liquid Avatar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liquid Avatar Techno has no effect on the direction of Wirecard i.e., Wirecard and Liquid Avatar go up and down completely randomly.
Pair Corralation between Wirecard and Liquid Avatar
Assuming the 90 days horizon Wirecard AG is expected to generate 12.35 times more return on investment than Liquid Avatar. However, Wirecard is 12.35 times more volatile than Liquid Avatar Technologies. It trades about 0.11 of its potential returns per unit of risk. Liquid Avatar Technologies is currently generating about -0.09 per unit of risk. If you would invest 1.00 in Wirecard AG on September 22, 2024 and sell it today you would earn a total of 0.00 from holding Wirecard AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.45% |
| Values | Daily Returns |
Wirecard AG vs. Liquid Avatar Technologies
Performance |
| Timeline |
| Wirecard AG |
| Liquid Avatar Techno |
Wirecard and Liquid Avatar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wirecard and Liquid Avatar
The main advantage of trading using opposite Wirecard and Liquid Avatar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wirecard position performs unexpectedly, Liquid Avatar 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 Liquid Avatar will offset losses from the drop in Liquid Avatar's long position.| Wirecard vs. NextPlat Corp | Wirecard vs. Liquid Avatar Technologies | Wirecard vs. Waldencast Acquisition Corp | Wirecard vs. CXApp Inc |
| Liquid Avatar vs. NextPlat Corp | Liquid Avatar vs. Wirecard AG | Liquid Avatar vs. Waldencast Acquisition Corp | Liquid Avatar vs. CXApp Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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