Correlation Between Simon Property and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Simon Property 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 Simon Property and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Simon Property Group and Meiwu Technology Co, you can compare the effects of market volatilities on Simon Property 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 Simon Property with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simon Property and Meiwu Technology.
Diversification Opportunities for Simon Property and Meiwu Technology
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simon and Meiwu is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Simon Property Group and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Simon Property 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 Simon Property Group 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 Simon Property i.e., Simon Property and Meiwu Technology go up and down completely randomly.
Pair Corralation between Simon Property and Meiwu Technology
Considering the 90-day investment horizon Simon Property Group is expected to generate 0.15 times more return on investment than Meiwu Technology. However, Simon Property Group is 6.52 times less risky than Meiwu Technology. It trades about 0.08 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about -0.02 per unit of risk. If you would invest 10,478 in Simon Property Group on August 26, 2024 and sell it today you would earn a total of 7,636 from holding Simon Property Group or generate 72.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simon Property Group vs. Meiwu Technology Co
Performance |
| Timeline |
| Simon Property Group |
| Meiwu Technology |
Simon Property and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simon Property and Meiwu Technology
The main advantage of trading using opposite Simon Property and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simon Property 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.| Simon Property vs. Site Centers Corp | Simon Property vs. Inventrust Properties Corp | Simon Property vs. Retail Opportunity Investments | Simon Property vs. Netstreit 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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