Correlation Between Brand Engagement and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Brand Engagement 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 Brand Engagement and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brand Engagement Network and Meiwu Technology Co, you can compare the effects of market volatilities on Brand Engagement 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 Brand Engagement with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brand Engagement and Meiwu Technology.
Diversification Opportunities for Brand Engagement and Meiwu Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Brand and Meiwu is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Brand Engagement Network and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Brand Engagement 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 Brand Engagement Network 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 Brand Engagement i.e., Brand Engagement and Meiwu Technology go up and down completely randomly.
Pair Corralation between Brand Engagement and Meiwu Technology
Assuming the 90 days horizon Brand Engagement Network is expected to generate 11.77 times more return on investment than Meiwu Technology. However, Brand Engagement is 11.77 times more volatile than Meiwu Technology Co. It trades about 0.07 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.09 per unit of risk. If you would invest 2.70 in Brand Engagement Network on August 27, 2024 and sell it today you would lose (0.59) from holding Brand Engagement Network or give up 21.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 66.67% |
| Values | Daily Returns |
Brand Engagement Network vs. Meiwu Technology Co
Performance |
| Timeline |
| Brand Engagement Network |
| Meiwu Technology |
Brand Engagement and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brand Engagement and Meiwu Technology
The main advantage of trading using opposite Brand Engagement and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brand Engagement 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.| Brand Engagement vs. Meiwu Technology Co | Brand Engagement vs. Trupanion | Brand Engagement vs. Employers Holdings | Brand Engagement vs. Amkor Technology |
| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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