Correlation Between Meituan and Cbd Of
Can any of the company-specific risk be diversified away by investing in both Meituan and Cbd Of 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 Meituan and Cbd Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meituan and Cbd of Denver, you can compare the effects of market volatilities on Meituan and Cbd Of 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 Meituan with a short position of Cbd Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meituan and Cbd Of.
Diversification Opportunities for Meituan and Cbd Of
Excellent diversification
The 3 months correlation between Meituan and Cbd is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Meituan and Cbd of Denver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cbd of Denver and Meituan 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 Meituan are associated (or correlated) with Cbd Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cbd of Denver has no effect on the direction of Meituan i.e., Meituan and Cbd Of go up and down completely randomly.
Pair Corralation between Meituan and Cbd Of
Assuming the 90 days horizon Meituan is expected to under-perform the Cbd Of. But the pink sheet apears to be less risky and, when comparing its historical volatility, Meituan is 5.71 times less risky than Cbd Of. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Cbd of Denver is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Cbd of Denver on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Cbd of Denver or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meituan vs. Cbd of Denver
Performance |
| Timeline |
| Meituan |
| Cbd of Denver |
Meituan and Cbd Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meituan and Cbd Of
The main advantage of trading using opposite Meituan and Cbd Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meituan position performs unexpectedly, Cbd Of 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 Cbd Of will offset losses from the drop in Cbd Of's long position.| Meituan vs. 1StdibsCom | Meituan vs. Natural Health Trend | Meituan vs. Hour Loop | Meituan vs. Liquidity Services |
| Cbd Of vs. 1StdibsCom | Cbd Of vs. Natural Health Trend | Cbd Of vs. Hour Loop | Cbd Of vs. Liquidity Services |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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