Correlation Between WiMi Hologram and Marfrig Global

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Can any of the company-specific risk be diversified away by investing in both WiMi Hologram and Marfrig Global 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 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

-0.07
  Correlation Coefficient

Good diversification

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

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.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

WiMi Hologram Cloud  vs.  Marfrig Global Foods

 Performance 
       Timeline  
WiMi Hologram Cloud 

Risk-Adjusted Performance

11 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in WiMi Hologram Cloud are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady primary indicators, WiMi Hologram demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Marfrig Global Foods 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Marfrig Global Foods has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Marfrig Global is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

WiMi Hologram and Marfrig Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with WiMi Hologram and Marfrig Global

The 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.
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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 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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