Correlation Between WiMi Hologram and AMGEN

Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and AMGEN 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 AMGEN 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 AMGEN INC 4663, you can compare the effects of market volatilities on WiMi Hologram and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and AMGEN.

Diversification Opportunities for WiMi Hologram and AMGEN

0.07

Correlation Coefficient

WiMi Hologram  AMGEN

Significant diversification

The 3 months correlation between WiMi and AMGEN is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding WiMi Hologram Cloud and AMGEN INC 4663 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 4663 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC 4663 has no effect on the direction of WiMi Hologram i.e., WiMi Hologram and AMGEN go up and down completely randomly.

Pair Corralation between WiMi Hologram and AMGEN

Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 2.25 times more return on investment than AMGEN. However, WiMi Hologram is 2.25 times more volatile than AMGEN INC 4663. It trades about 0.01 of its potential returns per unit of risk. AMGEN INC 4663 is currently generating about 0.0 per unit of risk. If you would invest  85.00  in WiMi Hologram Cloud on September 14, 2024 and sell it today you would lose (4.00) from holding WiMi Hologram Cloud or give up 4.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

WiMi Hologram Cloud  vs.  AMGEN INC 4663

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.

AMGEN INC 4663

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMGEN INC 4663 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, AMGEN is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with WiMi Hologram and AMGEN

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

The idea behind WiMi Hologram Cloud and AMGEN INC 4663 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.