Correlation Between WiMi Hologram and ASTRAZENECA

Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and ASTRAZENECA 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 ASTRAZENECA 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 ASTRAZENECA PLC 4, you can compare the effects of market volatilities on WiMi Hologram and ASTRAZENECA 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 ASTRAZENECA. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and ASTRAZENECA.

Diversification Opportunities for WiMi Hologram and ASTRAZENECA

-0.24

Correlation Coefficient

WiMi Hologram  ASTRAZENECA

Very good diversification

The 3 months correlation between WiMi and ASTRAZENECA is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and ASTRAZENECA PLC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRAZENECA PLC 4 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 ASTRAZENECA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRAZENECA PLC 4 has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and ASTRAZENECA go up and down completely randomly.

Pair Corralation between WiMi Hologram and ASTRAZENECA

Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 18.43 times more return on investment than ASTRAZENECA. However, WiMi Hologram is 18.43 times more volatile than ASTRAZENECA PLC 4. It trades about 0.05 of its potential returns per unit of risk. ASTRAZENECA PLC 4 is currently generating about -0.03 per unit of risk. If you would invest  85.00  in WiMi Hologram Cloud on December 2, 2024 and sell it today you would lose (7.00) from holding WiMi Hologram Cloud or give up 8.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	86.89%
Values	Daily Returns

WiMi Hologram Cloud  vs.  ASTRAZENECA PLC 4

WiMi Hologram Cloud

Risk-Adjusted Performance

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 weak primary indicators, WiMi Hologram demonstrated solid returns over the last few months and may actually be approaching a breakup point.

ASTRAZENECA PLC 4

Risk-Adjusted Performance

Very Weak

Over the last 90 days ASTRAZENECA PLC 4 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ASTRAZENECA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with WiMi Hologram and ASTRAZENECA

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

The idea behind WiMi Hologram Cloud and ASTRAZENECA PLC 4 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.