Correlation Between MicroCloud Hologram and EMagin

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

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

Diversification Opportunities for MicroCloud Hologram and EMagin

-0.19

Correlation Coefficient

MicroCloud Hologram  EMagin

Good diversification

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

Pair Corralation between MicroCloud Hologram and EMagin

If you would invest  200.00  in EMagin on September 5, 2024 and sell it today you would earn a total of  0.00  from holding EMagin or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

MicroCloud Hologram  vs.  EMagin

MicroCloud Hologram

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MicroCloud Hologram has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

EMagin

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EMagin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, EMagin is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with MicroCloud Hologram and EMagin

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

The idea behind MicroCloud Hologram and EMagin 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.