Correlation Between Jeffs Brands and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands 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 Jeffs Brands and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Meiwu Technology Co, you can compare the effects of market volatilities on Jeffs Brands 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 Jeffs Brands with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Meiwu Technology.
Diversification Opportunities for Jeffs Brands and Meiwu Technology
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jeffs and Meiwu is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Jeffs Brands 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 Jeffs Brands 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 Jeffs Brands i.e., Jeffs Brands and Meiwu Technology go up and down completely randomly.
Pair Corralation between Jeffs Brands and Meiwu Technology
Given the investment horizon of 90 days Jeffs Brands is expected to generate 93.64 times more return on investment than Meiwu Technology. However, Jeffs Brands is 93.64 times more volatile than Meiwu Technology Co. It trades about 0.22 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.11 per unit of risk. If you would invest 30.00 in Jeffs Brands on August 28, 2024 and sell it today you would earn a total of 296.00 from holding Jeffs Brands or generate 986.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Meiwu Technology Co
Performance |
| Timeline |
| Jeffs Brands |
| Meiwu Technology |
Jeffs Brands and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Meiwu Technology
The main advantage of trading using opposite Jeffs Brands and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands 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.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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