Correlation Between MicroCloud Hologram and Intermediate Capital

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

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

Diversification Opportunities for MicroCloud Hologram and Intermediate Capital

0.27

Correlation Coefficient

MicroCloud Hologram  Intermediate Capital

Modest diversification

The 3 months correlation between MicroCloud and Intermediate is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding MicroCloud Hologram and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital 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 Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of MicroCloud Hologram i.e., MicroCloud Hologram and Intermediate Capital go up and down completely randomly.

Pair Corralation between MicroCloud Hologram and Intermediate Capital

Given the investment horizon of 90 days MicroCloud Hologram is expected to generate 46.24 times more return on investment than Intermediate Capital. However, MicroCloud Hologram is 46.24 times more volatile than Intermediate Capital Group. It trades about 0.05 of its potential returns per unit of risk. Intermediate Capital Group is currently generating about -0.13 per unit of risk. If you would invest  146.00  in MicroCloud Hologram on December 25, 2024 and sell it today you would lose (48.02) from holding MicroCloud Hologram or give up 32.89% of portfolio value over 90 days.

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

MicroCloud Hologram  vs.  Intermediate Capital Group

MicroCloud Hologram

Risk-Adjusted Performance

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.

Intermediate Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intermediate Capital Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Intermediate Capital 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 Intermediate Capital

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

The idea behind MicroCloud Hologram and Intermediate Capital Group 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.