Correlation Between WiMi Hologram and Scienjoy Holding

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

Diversification Opportunities for WiMi Hologram and Scienjoy Holding

-0.01

Correlation Coefficient

WiMi Hologram  Scienjoy Holding

Good diversification

The 3 months correlation between WiMi and Scienjoy is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and Scienjoy Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scienjoy Holding Corp 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 Scienjoy Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scienjoy Holding Corp has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and Scienjoy Holding go up and down completely randomly.

Pair Corralation between WiMi Hologram and Scienjoy Holding

Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 0.86 times more return on investment than Scienjoy Holding. However, WiMi Hologram Cloud is 1.17 times less risky than Scienjoy Holding. It trades about 0.04 of its potential returns per unit of risk. Scienjoy Holding Corp is currently generating about 0.01 per unit of risk. 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

WiMi Hologram Cloud  vs.  Scienjoy Holding Corp

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.

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.

Pair Trading with WiMi Hologram and Scienjoy Holding

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

The idea behind WiMi Hologram Cloud and Scienjoy Holding Corp 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..