Correlation Between MicroCloud Hologram and Lever Global

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

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

Diversification Opportunities for MicroCloud Hologram and Lever Global

0.19

Correlation Coefficient

MicroCloud Hologram  Lever Global

Average diversification

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

Pair Corralation between MicroCloud Hologram and Lever Global

Given the investment horizon of 90 days MicroCloud Hologram is expected to generate 10.06 times less return on investment than Lever Global. In addition to that, MicroCloud Hologram is 1.32 times more volatile than Lever Global. It trades about 0.02 of its total potential returns per unit of risk. Lever Global is currently generating about 0.23 per unit of volatility. If you would invest  75.00  in Lever Global on October 23, 2024 and sell it today you would earn a total of  248.00  from holding Lever Global or generate 330.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	78.33%
Values	Daily Returns

MicroCloud Hologram  vs.  Lever Global

MicroCloud Hologram

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MicroCloud Hologram are ranked lower than 1 (%) 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.

Lever Global

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Lever Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively abnormal technical and fundamental indicators, Lever Global reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MicroCloud Hologram and Lever Global

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

The idea behind MicroCloud Hologram and Lever Global 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.