Correlation Between Wysiwyg Studios and Aniplus

Can any of the company-specific risk be diversified away by investing in both Wysiwyg Studios and Aniplus 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 Wysiwyg Studios and Aniplus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wysiwyg Studios Co and Aniplus, you can compare the effects of market volatilities on Wysiwyg Studios and Aniplus 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 Wysiwyg Studios with a short position of Aniplus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wysiwyg Studios and Aniplus.

Diversification Opportunities for Wysiwyg Studios and Aniplus

-0.64

Correlation Coefficient

Wysiwyg Studios  Aniplus

Excellent diversification

The 3 months correlation between Wysiwyg and Aniplus is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wysiwyg Studios Co and Aniplus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aniplus and Wysiwyg Studios 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 Wysiwyg Studios Co are associated (or correlated) with Aniplus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aniplus has no effect on the direction of Wysiwyg Studios i.e., Wysiwyg Studios and Aniplus go up and down completely randomly.

Pair Corralation between Wysiwyg Studios and Aniplus

Assuming the 90 days trading horizon Wysiwyg Studios Co is expected to under-perform the Aniplus. In addition to that, Wysiwyg Studios is 2.14 times more volatile than Aniplus. It trades about -0.18 of its total potential returns per unit of risk. Aniplus is currently generating about 0.16 per unit of volatility. If you would invest  260,000  in Aniplus on December 25, 2024 and sell it today you would earn a total of  47,000  from holding Aniplus or generate 18.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Wysiwyg Studios Co  vs.  Aniplus

Wysiwyg Studios

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wysiwyg Studios Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Aniplus

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aniplus are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Aniplus sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wysiwyg Studios and Aniplus

The main advantage of trading using opposite Wysiwyg Studios and Aniplus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wysiwyg Studios position performs unexpectedly, Aniplus 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 Aniplus will offset losses from the drop in Aniplus' long position.

The idea behind Wysiwyg Studios Co and Aniplus pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.