Correlation Between Meituan ADR and Cbd Of
Can any of the company-specific risk be diversified away by investing in both Meituan ADR 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 ADR 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 ADR and Cbd of Denver, you can compare the effects of market volatilities on Meituan ADR 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 ADR with a short position of Cbd Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meituan ADR and Cbd Of.
Diversification Opportunities for Meituan ADR and Cbd Of
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meituan and Cbd is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Meituan ADR 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 ADR 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 ADR 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 ADR i.e., Meituan ADR and Cbd Of go up and down completely randomly.
Pair Corralation between Meituan ADR and Cbd Of
Assuming the 90 days horizon Meituan ADR is expected to under-perform the Cbd Of. But the pink sheet apears to be less risky and, when comparing its historical volatility, Meituan ADR is 4.91 times less risky than Cbd Of. The pink sheet trades about -0.12 of its potential returns per unit of risk. The Cbd of Denver is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.03 in Cbd of Denver on September 1, 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 ADR vs. Cbd of Denver
Performance |
| Timeline |
| Meituan ADR |
| Cbd of Denver |
Meituan ADR and Cbd Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meituan ADR and Cbd Of
The main advantage of trading using opposite Meituan ADR and Cbd Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meituan ADR 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 ADR vs. PDD Holdings | Meituan ADR vs. JD Inc Adr | Meituan ADR vs. Baozun Inc | Meituan ADR vs. Global E Online |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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