Correlation Between Casio Computer and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Casio Computer 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 Casio Computer and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Casio Computer Co and Meiwu Technology Co, you can compare the effects of market volatilities on Casio Computer 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 Casio Computer with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casio Computer and Meiwu Technology.
Diversification Opportunities for Casio Computer and Meiwu Technology
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Casio and Meiwu is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Casio Computer Co and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Casio Computer 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 Casio Computer Co 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 Casio Computer i.e., Casio Computer and Meiwu Technology go up and down completely randomly.
Pair Corralation between Casio Computer and Meiwu Technology
Assuming the 90 days horizon Casio Computer Co is expected to under-perform the Meiwu Technology. But the pink sheet apears to be less risky and, when comparing its historical volatility, Casio Computer Co is 1.07 times less risky than Meiwu Technology. The pink sheet trades about -0.16 of its potential returns per unit of risk. The Meiwu Technology Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 80.00 in Meiwu Technology Co on August 24, 2024 and sell it today you would earn a total of 3.00 from holding Meiwu Technology Co or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Casio Computer Co vs. Meiwu Technology Co
Performance |
| Timeline |
| Casio Computer |
| Meiwu Technology |
Casio Computer and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Casio Computer and Meiwu Technology
The main advantage of trading using opposite Casio Computer and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Casio Computer 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.| Casio Computer vs. Apple Inc | Casio Computer vs. Sharp | Casio Computer vs. TCL Electronics Holdings | Casio Computer vs. Xiaomi Corp |
| 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 CEOs Directory module to screen CEOs from public companies around the world.
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