diversifiable risk of combining WiMi Hologram and Marfrig Global 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 Marfrig Global Foods, you can compare the effects of market volatilities on WiMi Hologram and Marfrig Global 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 Marfrig Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiMi Hologram and Marfrig Global.
Diversification Opportunities for WiMi Hologram and Marfrig Global
Pair Corralation between WiMi Hologram and Marfrig Global
Given the investment horizon of 90 days WiMi Hologram Cloud is expected to generate 1.94 times more return on investment than Marfrig Global. However, WiMi Hologram is 1.94 times more volatile than Marfrig Global Foods. It trades about 0.01 of its potential returns per unit of risk. Marfrig Global Foods is currently generating about -0.04 per unit of risk. If you would invest 234.00 in WiMi Hologram Cloud on November 24, 2023 and sell it today you would lose (107.00) from holding WiMi Hologram Cloud or give up 45.73% of portfolio value over 90 days.
|3 Months [change]
WiMi Hologram Cloud vs. Marfrig Global Foods
WiMi Hologram and Marfrig Global Volatility Contrast
Pair Trading with WiMi Hologram and Marfrig GlobalThe main advantage of trading using opposite WiMi Hologram and Marfrig Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiMi Hologram position performs unexpectedly, Marfrig Global 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 Marfrig Global will offset losses from the drop in Marfrig Global's long position. The idea behind WiMi Hologram Cloud and Marfrig Global Foods 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.
Check out your portfolio center.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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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