Correlation Between BGC and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both BGC 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 BGC and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGC Group and Meiwu Technology Co, you can compare the effects of market volatilities on BGC 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 BGC with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGC and Meiwu Technology.
Diversification Opportunities for BGC and Meiwu Technology
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between BGC and Meiwu is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding BGC Group and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and BGC 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 BGC Group 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 BGC i.e., BGC and Meiwu Technology go up and down completely randomly.
Pair Corralation between BGC and Meiwu Technology
Considering the 90-day investment horizon BGC Group is expected to generate 0.35 times more return on investment than Meiwu Technology. However, BGC Group is 2.9 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 per unit of risk. If you would invest 843.00 in BGC Group on September 2, 2024 and sell it today you would earn a total of 131.00 from holding BGC Group or generate 15.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGC Group vs. Meiwu Technology Co
Performance |
| Timeline |
| BGC Group |
| Meiwu Technology |
BGC and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGC and Meiwu Technology
The main advantage of trading using opposite BGC and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGC 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.| BGC vs. BTB Real Estate | BGC vs. Old Republic International | BGC vs. Bank of America | BGC vs. FactSet Research Systems |
| Meiwu Technology vs. BJs Wholesale Club | Meiwu Technology vs. Dollar General | Meiwu Technology vs. Grocery Outlet Holding | Meiwu Technology vs. Kroger Company |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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