Correlation Between Allegroeu and Meituan
Can any of the company-specific risk be diversified away by investing in both Allegroeu and Meituan 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 Allegroeu and Meituan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allegroeu SA and Meituan, you can compare the effects of market volatilities on Allegroeu and Meituan 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 Allegroeu with a short position of Meituan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegroeu and Meituan.
Diversification Opportunities for Allegroeu and Meituan
Pay attention - limited upside
The 3 months correlation between Allegroeu and Meituan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allegroeu SA and Meituan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meituan and Allegroeu 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 Allegroeu SA are associated (or correlated) with Meituan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meituan has no effect on the direction of Allegroeu i.e., Allegroeu and Meituan go up and down completely randomly.
Pair Corralation between Allegroeu and Meituan
If you would invest 750.00 in Allegroeu SA on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Allegroeu SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegroeu SA vs. Meituan
Performance |
| Timeline |
| Allegroeu SA |
| Meituan |
Allegroeu and Meituan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegroeu and Meituan
The main advantage of trading using opposite Allegroeu and Meituan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegroeu position performs unexpectedly, Meituan 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 Meituan will offset losses from the drop in Meituan's long position.| Allegroeu vs. 1StdibsCom | Allegroeu vs. Natural Health Trend | Allegroeu vs. Hour Loop | Allegroeu vs. Liquidity Services |
| Meituan vs. 1StdibsCom | Meituan vs. Natural Health Trend | Meituan vs. Hour Loop | Meituan vs. Liquidity Services |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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