Correlation Between Golden Matrix and WiMi Hologram

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

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

Diversification Opportunities for Golden Matrix and WiMi Hologram

-0.28

Correlation Coefficient

Golden Matrix  WiMi Hologram

Very good diversification

The 3 months correlation between Golden and WiMi is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Golden Matrix Group and WiMi Hologram Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WiMi Hologram Cloud and Golden Matrix 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 Golden Matrix Group are associated (or correlated) with WiMi Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WiMi Hologram Cloud has no effect on the direction of Golden Matrix i.e., Golden Matrix and WiMi Hologram go up and down completely randomly.

Pair Corralation between Golden Matrix and WiMi Hologram

Given the investment horizon of 90 days Golden Matrix Group is expected to under-perform the WiMi Hologram. In addition to that, Golden Matrix is 1.01 times more volatile than WiMi Hologram Cloud. It trades about -0.03 of its total potential returns per unit of risk. WiMi Hologram Cloud is currently generating about 0.02 per unit of volatility. If you would invest  81.00  in WiMi Hologram Cloud on September 18, 2024 and sell it today you would lose (1.00) from holding WiMi Hologram Cloud or give up 1.23% of portfolio value over 90 days.

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

Golden Matrix Group  vs.  WiMi Hologram Cloud

Golden Matrix Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Matrix Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

WiMi Hologram Cloud

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in WiMi Hologram Cloud are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Golden Matrix and WiMi Hologram

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

The idea behind Golden Matrix Group and WiMi Hologram Cloud 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.