Correlation Between Allegiant Travel and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Allegiant Travel 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 Allegiant Travel and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allegiant Travel and Meiwu Technology Co, you can compare the effects of market volatilities on Allegiant Travel 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 Allegiant Travel with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegiant Travel and Meiwu Technology.
Diversification Opportunities for Allegiant Travel and Meiwu Technology
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allegiant and Meiwu is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Allegiant Travel and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Allegiant Travel 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 Allegiant Travel 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 Allegiant Travel i.e., Allegiant Travel and Meiwu Technology go up and down completely randomly.
Pair Corralation between Allegiant Travel and Meiwu Technology
Given the investment horizon of 90 days Allegiant Travel is expected to generate 1.37 times less return on investment than Meiwu Technology. But when comparing it to its historical volatility, Allegiant Travel is 1.12 times less risky than Meiwu Technology. It trades about 0.3 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 80.00 in Meiwu Technology Co on September 13, 2024 and sell it today you would earn a total of 62.00 from holding Meiwu Technology Co or generate 77.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Allegiant Travel vs. Meiwu Technology Co
Performance |
| Timeline |
| Allegiant Travel |
| Meiwu Technology |
Allegiant Travel and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegiant Travel and Meiwu Technology
The main advantage of trading using opposite Allegiant Travel and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegiant Travel 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.| Allegiant Travel vs. American Airlines Group | Allegiant Travel vs. Southwest Airlines | Allegiant Travel vs. United Airlines Holdings | Allegiant Travel vs. Frontier Group Holdings |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |