Correlation Between WiMi Hologram and Lendway

Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and Lendway 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 Lendway 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 Lendway, you can compare the effects of market volatilities on WiMi Hologram and Lendway 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 Lendway. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and Lendway.

Diversification Opportunities for WiMi Hologram and Lendway

-0.51

Correlation Coefficient

WiMi Hologram  Lendway

Excellent diversification

The 3 months correlation between WiMi and Lendway is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and Lendway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lendway 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 Lendway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lendway has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and Lendway go up and down completely randomly.

Pair Corralation between WiMi Hologram and Lendway

Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 1.66 times more return on investment than Lendway. However, WiMi Hologram is 1.66 times more volatile than Lendway. It trades about 0.03 of its potential returns per unit of risk. Lendway is currently generating about -0.01 per unit of risk. If you would invest  107.00  in WiMi Hologram Cloud on September 12, 2024 and sell it today you would lose (20.00) from holding WiMi Hologram Cloud or give up 18.69% of portfolio value over 90 days.

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

WiMi Hologram Cloud  vs.  Lendway

WiMi Hologram Cloud

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in WiMi Hologram Cloud are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent primary indicators, WiMi Hologram demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Lendway

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lendway are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Lendway showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WiMi Hologram and Lendway

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

The idea behind WiMi Hologram Cloud and Lendway 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..