Correlation Between Brunswick and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Brunswick 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 Brunswick and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunswick and Meiwu Technology Co, you can compare the effects of market volatilities on Brunswick 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 Brunswick with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunswick and Meiwu Technology.
Diversification Opportunities for Brunswick and Meiwu Technology
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brunswick and Meiwu is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Brunswick and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Brunswick 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 Brunswick 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 Brunswick i.e., Brunswick and Meiwu Technology go up and down completely randomly.
Pair Corralation between Brunswick and Meiwu Technology
Allowing for the 90-day total investment horizon Brunswick is expected to under-perform the Meiwu Technology. But the stock apears to be less risky and, when comparing its historical volatility, Brunswick is 1.43 times less risky than Meiwu Technology. The stock trades about -0.03 of its potential returns per unit of risk. The Meiwu Technology Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 81.00 in Meiwu Technology Co on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Meiwu Technology Co or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Brunswick vs. Meiwu Technology Co
Performance |
| Timeline |
| Brunswick |
| Meiwu Technology |
Brunswick and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunswick and Meiwu Technology
The main advantage of trading using opposite Brunswick and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunswick 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.| Brunswick vs. MCBC Holdings | Brunswick vs. Marine Products | Brunswick vs. Winnebago Industries | Brunswick vs. LCI Industries |
| 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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