Correlation Between Nextplat Corp and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp 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 Nextplat Corp and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and Meiwu Technology Co, you can compare the effects of market volatilities on Nextplat Corp 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 Nextplat Corp with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and Meiwu Technology.
Diversification Opportunities for Nextplat Corp and Meiwu Technology
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nextplat and Meiwu is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp i.e., Nextplat Corp and Meiwu Technology go up and down completely randomly.
Pair Corralation between Nextplat Corp and Meiwu Technology
Given the investment horizon of 90 days Nextplat Corp is expected to under-perform the Meiwu Technology. In addition to that, Nextplat Corp is 3.25 times more volatile than Meiwu Technology Co. It trades about -0.08 of its total potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.11 per unit of volatility. If you would invest 81.00 in Meiwu Technology Co on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Meiwu Technology Co or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextplat Corp vs. Meiwu Technology Co
Performance |
| Timeline |
| Nextplat Corp |
| Meiwu Technology |
Nextplat Corp and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and Meiwu Technology
The main advantage of trading using opposite Nextplat Corp and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp 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.The idea behind Nextplat Corp and Meiwu Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets |