Correlation Between Rivernorth Opportunities and MicroAlgo

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

By analyzing existing cross correlation between Rivernorth Opportunities and MicroAlgo, you can compare the effects of market volatilities on Rivernorth Opportunities and MicroAlgo 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 Rivernorth Opportunities with a short position of MicroAlgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rivernorth Opportunities and MicroAlgo.

Diversification Opportunities for Rivernorth Opportunities and MicroAlgo

-0.88

Correlation Coefficient

Rivernorth Opportunities  MicroAlgo

Pay attention - limited upside

The 3 months correlation between Rivernorth and MicroAlgo is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Rivernorth Opportunities and MicroAlgo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MicroAlgo and Rivernorth Opportunities 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 Rivernorth Opportunities are associated (or correlated) with MicroAlgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MicroAlgo has no effect on the direction of Rivernorth Opportunities i.e., Rivernorth Opportunities and MicroAlgo go up and down completely randomly.

Pair Corralation between Rivernorth Opportunities and MicroAlgo

Considering the 90-day investment horizon Rivernorth Opportunities is expected to generate 0.06 times more return on investment than MicroAlgo. However, Rivernorth Opportunities is 17.28 times less risky than MicroAlgo. It trades about 0.15 of its potential returns per unit of risk. MicroAlgo is currently generating about -0.25 per unit of risk. If you would invest  1,166  in Rivernorth Opportunities on May 13, 2025 and sell it today you would earn a total of  69.00  from holding Rivernorth Opportunities or generate 5.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Rivernorth Opportunities  vs.  MicroAlgo

Rivernorth Opportunities

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rivernorth Opportunities are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable forward indicators, Rivernorth Opportunities is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

MicroAlgo

Risk-Adjusted Performance

Weakest

Over the last 90 days MicroAlgo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Rivernorth Opportunities and MicroAlgo

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

The idea behind Rivernorth Opportunities and MicroAlgo 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.