Correlation Between WiMi Hologram and AMC Networks

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

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

Diversification Opportunities for WiMi Hologram and AMC Networks

0.53

Correlation Coefficient

WiMi Hologram  AMC Networks

Very weak diversification

The 3 months correlation between WiMi and AMC is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and AMC Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Networks and WiMi 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 WiMi Hologram Cloud are associated (or correlated) with AMC Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Networks has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and AMC Networks go up and down completely randomly.

Pair Corralation between WiMi Hologram and AMC Networks

Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 4.52 times more return on investment than AMC Networks. However, WiMi Hologram is 4.52 times more volatile than AMC Networks. It trades about 0.0 of its potential returns per unit of risk. AMC Networks is currently generating about -0.13 per unit of risk. If you would invest  129.00  in WiMi Hologram Cloud on December 26, 2024 and sell it today you would lose (53.00) from holding WiMi Hologram Cloud or give up 41.09% of portfolio value over 90 days.

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

WiMi Hologram Cloud  vs.  AMC Networks

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 fairly strong primary indicators, WiMi Hologram is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

AMC Networks

Risk-Adjusted Performance

Very Weak

Over the last 90 days AMC Networks 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 fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with WiMi Hologram and AMC Networks

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

The idea behind WiMi Hologram Cloud and AMC Networks 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.