Correlation Between Scienjoy Holding and WiMi Hologram

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

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

Diversification Opportunities for Scienjoy Holding and WiMi Hologram

-0.01

Correlation Coefficient

Scienjoy Holding  WiMi Hologram

Good diversification

The 3 months correlation between Scienjoy and WiMi is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp 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 Scienjoy Holding 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 Scienjoy Holding Corp 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 Scienjoy Holding i.e., Scienjoy Holding and WiMi Hologram go up and down completely randomly.

Pair Corralation between Scienjoy Holding and WiMi Hologram

Allowing for the 90-day total investment horizon Scienjoy Holding is expected to generate 3.91 times less return on investment than WiMi Hologram. In addition to that, Scienjoy Holding is 1.17 times more volatile than WiMi Hologram Cloud. It trades about 0.01 of its total potential returns per unit of risk. WiMi Hologram Cloud is currently generating about 0.04 per unit of volatility. If you would invest  79.00  in WiMi Hologram Cloud on August 30, 2024 and sell it today you would earn a total of  4.00  from holding WiMi Hologram Cloud or generate 5.06% return on investment over 90 days.

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

Scienjoy Holding Corp  vs.  WiMi Hologram Cloud

Scienjoy Holding Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Scienjoy Holding Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady forward-looking indicators, Scienjoy Holding is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.

WiMi Hologram Cloud

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in WiMi Hologram Cloud are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak primary indicators, WiMi Hologram may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Scienjoy Holding and WiMi Hologram

The main advantage of trading using opposite Scienjoy Holding and WiMi Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scienjoy Holding 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 Scienjoy Holding Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.