Correlation Between Wing Yip and MicroCloud Hologram

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

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

Diversification Opportunities for Wing Yip and MicroCloud Hologram

0.22

Correlation Coefficient

Wing Yip  MicroCloud Hologram

Modest diversification

The 3 months correlation between Wing and MicroCloud is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Wing Yip Food and MicroCloud Hologram in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroCloud Hologram and Wing Yip 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 Wing Yip Food are associated (or correlated) with MicroCloud Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroCloud Hologram has no effect on the direction of Wing Yip i.e., Wing Yip and MicroCloud Hologram go up and down completely randomly.

Pair Corralation between Wing Yip and MicroCloud Hologram

Given the investment horizon of 90 days Wing Yip Food is expected to generate 7.71 times more return on investment than MicroCloud Hologram. However, Wing Yip is 7.71 times more volatile than MicroCloud Hologram. It trades about 0.19 of its potential returns per unit of risk. MicroCloud Hologram is currently generating about 0.06 per unit of risk. If you would invest  0.00  in Wing Yip Food on October 7, 2024 and sell it today you would earn a total of  463.00  from holding Wing Yip Food or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	44.44%
Values	Daily Returns

Wing Yip Food  vs.  MicroCloud Hologram

Wing Yip Food

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wing Yip Food are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical indicators, Wing Yip reported solid returns over the last few months and may actually be approaching a breakup point.

MicroCloud Hologram

Risk-Adjusted Performance

4 of 100

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.

Pair Trading with Wing Yip and MicroCloud Hologram

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

The idea behind Wing Yip Food and MicroCloud Hologram 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.

Check out your portfolio center.

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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.