Correlation Between Air Lease and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Air Lease and Meiwu Technology 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 Air Lease and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Lease and Meiwu Technology Co, you can compare the effects of market volatilities on Air Lease and Meiwu Technology 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 Air Lease with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Lease and Meiwu Technology.
Diversification Opportunities for Air Lease and Meiwu Technology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Air and Meiwu is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Air Lease and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Air Lease 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 Air Lease are associated (or correlated) with Meiwu Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meiwu Technology has no effect on the direction of Air Lease i.e., Air Lease and Meiwu Technology go up and down completely randomly.
Pair Corralation between Air Lease and Meiwu Technology
Allowing for the 90-day total investment horizon Air Lease is expected to generate 1.34 times less return on investment than Meiwu Technology. But when comparing it to its historical volatility, Air Lease is 5.04 times less risky than Meiwu Technology. It trades about 0.06 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 263.00 in Meiwu Technology Co on September 3, 2024 and sell it today you would lose (165.00) from holding Meiwu Technology Co or give up 62.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Lease vs. Meiwu Technology Co
Performance |
| Timeline |
| Air Lease |
| Meiwu Technology |
Air Lease and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Lease and Meiwu Technology
The main advantage of trading using opposite Air Lease and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Lease position performs unexpectedly, Meiwu Technology 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 Meiwu Technology will offset losses from the drop in Meiwu Technology's long position.| Air Lease vs. Alta Equipment Group | Air Lease vs. McGrath RentCorp | Air Lease vs. Herc Holdings | Air Lease vs. HE Equipment Services |
| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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