Correlation Between MicroCloud Hologram and APT Satellite

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

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

Diversification Opportunities for MicroCloud Hologram and APT Satellite

-0.67

Correlation Coefficient

MicroCloud Hologram  APT Satellite

Excellent diversification

The 3 months correlation between MicroCloud and APT is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding MicroCloud Hologram and APT Satellite Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APT Satellite Holdings and MicroCloud 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 MicroCloud Hologram are associated (or correlated) with APT Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APT Satellite Holdings has no effect on the direction of MicroCloud Hologram i.e., MicroCloud Hologram and APT Satellite go up and down completely randomly.

Pair Corralation between MicroCloud Hologram and APT Satellite

Given the investment horizon of 90 days MicroCloud Hologram is expected to generate 45.87 times more return on investment than APT Satellite. However, MicroCloud Hologram is 45.87 times more volatile than APT Satellite Holdings. It trades about 0.06 of its potential returns per unit of risk. APT Satellite Holdings is currently generating about 0.18 per unit of risk. If you would invest  5,360  in MicroCloud Hologram on October 7, 2024 and sell it today you would lose (4,906) from holding MicroCloud Hologram or give up 91.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	24.19%
Values	Daily Returns

MicroCloud Hologram  vs.  APT Satellite Holdings

MicroCloud Hologram

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MicroCloud Hologram are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, MicroCloud Hologram displayed solid returns over the last few months and may actually be approaching a breakup point.

APT Satellite Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days APT Satellite Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking indicators, APT Satellite is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MicroCloud Hologram and APT Satellite

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

The idea behind MicroCloud Hologram and APT Satellite Holdings 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..