Correlation Between Fluent and WiMi Hologram

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

By analyzing existing cross correlation between Fluent Inc and WiMi Hologram Cloud, you can compare the effects of market volatilities on Fluent and WiMi Hologram 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 Fluent with a short position of WiMi Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and WiMi Hologram.

Diversification Opportunities for Fluent and WiMi Hologram

0.19

Correlation Coefficient

Fluent  WiMi Hologram

Average diversification

The 3 months correlation between Fluent and WiMi is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and WiMi Hologram Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WiMi Hologram Cloud and Fluent 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 Fluent Inc are associated (or correlated) with WiMi Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WiMi Hologram Cloud has no effect on the direction of Fluent i.e., Fluent and WiMi Hologram go up and down completely randomly.

Pair Corralation between Fluent and WiMi Hologram

Given the investment horizon of 90 days Fluent Inc is expected to generate 0.36 times more return on investment than WiMi Hologram. However, Fluent Inc is 2.78 times less risky than WiMi Hologram. It trades about -0.05 of its potential returns per unit of risk. WiMi Hologram Cloud is currently generating about -0.1 per unit of risk. If you would invest  266.00  in Fluent Inc on December 27, 2024 and sell it today you would lose (40.20) from holding Fluent Inc or give up 15.11% of portfolio value over 90 days.

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

Fluent Inc  vs.  WiMi Hologram Cloud

Fluent Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fluent Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

WiMi Hologram Cloud

Risk-Adjusted Performance

Very Weak

Over the last 90 days WiMi Hologram Cloud 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 primary indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Fluent and WiMi Hologram

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

The idea behind Fluent Inc and WiMi Hologram Cloud 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.