Correlation Between GWOCN and WiMi Hologram

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

By analyzing existing cross correlation between GWOCN 904 12 AUG 25 and WiMi Hologram Cloud, you can compare the effects of market volatilities on GWOCN 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 GWOCN with a short position of WiMi Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of GWOCN and WiMi Hologram.

Diversification Opportunities for GWOCN and WiMi Hologram

-0.3

Correlation Coefficient

GWOCN  WiMi Hologram

Very good diversification

The 3 months correlation between GWOCN and WiMi is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding GWOCN 904 12 AUG 25 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 GWOCN 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 GWOCN 904 12 AUG 25 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 GWOCN i.e., GWOCN and WiMi Hologram go up and down completely randomly.

Pair Corralation between GWOCN and WiMi Hologram

Assuming the 90 days trading horizon GWOCN 904 12 AUG 25 is expected to under-perform the WiMi Hologram. But the bond apears to be less risky and, when comparing its historical volatility, GWOCN 904 12 AUG 25 is 4.27 times less risky than WiMi Hologram. The bond trades about -0.19 of its potential returns per unit of risk. The WiMi Hologram Cloud is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  85.00  in WiMi Hologram Cloud on September 14, 2024 and sell it today you would lose (4.71) from holding WiMi Hologram Cloud or give up 5.54% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	34.38%
Values	Daily Returns

GWOCN 904 12 AUG 25  vs.  WiMi Hologram Cloud

GWOCN 904 12

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GWOCN 904 12 AUG 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for GWOCN 904 12 AUG 25 investors.

WiMi Hologram Cloud

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WiMi Hologram Cloud has generated negative risk-adjusted returns adding no value to investors with long positions. 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 GWOCN and WiMi Hologram

The main advantage of trading using opposite GWOCN and WiMi Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GWOCN 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 GWOCN 904 12 AUG 25 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 Transaction History module to view history of all your transactions and understand their impact on performance.