Correlation Between AerSale Corp and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both AerSale Corp 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 AerSale Corp and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerSale Corp and Meiwu Technology Co, you can compare the effects of market volatilities on AerSale Corp 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 AerSale Corp with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerSale Corp and Meiwu Technology.
Diversification Opportunities for AerSale Corp and Meiwu Technology
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between AerSale and Meiwu is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding AerSale Corp and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and AerSale Corp 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 AerSale Corp 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 AerSale Corp i.e., AerSale Corp and Meiwu Technology go up and down completely randomly.
Pair Corralation between AerSale Corp and Meiwu Technology
Given the investment horizon of 90 days AerSale Corp is expected to under-perform the Meiwu Technology. But the stock apears to be less risky and, when comparing its historical volatility, AerSale Corp is 2.6 times less risky than Meiwu Technology. The stock trades about -0.05 of its potential returns per unit of risk. The Meiwu Technology Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 696.00 in Meiwu Technology Co on August 31, 2024 and sell it today you would lose (598.00) from holding Meiwu Technology Co or give up 85.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerSale Corp vs. Meiwu Technology Co
Performance |
| Timeline |
| AerSale Corp |
| Meiwu Technology |
AerSale Corp and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerSale Corp and Meiwu Technology
The main advantage of trading using opposite AerSale Corp and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerSale Corp 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.| AerSale Corp vs. Grupo Aeroportuario del | AerSale Corp vs. Grupo Aeroportuario del | AerSale Corp vs. Corporacion America Airports | AerSale Corp vs. Aquagold International |
| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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