Correlation Between BBB Foods and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both BBB Foods 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 BBB Foods and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BBB Foods and Meiwu Technology Co, you can compare the effects of market volatilities on BBB Foods 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 BBB Foods with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BBB Foods and Meiwu Technology.
Diversification Opportunities for BBB Foods and Meiwu Technology
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BBB and Meiwu is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding BBB Foods and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and BBB Foods 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 BBB Foods 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 BBB Foods i.e., BBB Foods and Meiwu Technology go up and down completely randomly.
Pair Corralation between BBB Foods and Meiwu Technology
Given the investment horizon of 90 days BBB Foods is expected to generate 0.36 times more return on investment than Meiwu Technology. However, BBB Foods is 2.76 times less risky than Meiwu Technology. It trades about 0.12 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 1,750 in BBB Foods on August 27, 2024 and sell it today you would earn a total of 1,657 from holding BBB Foods or generate 94.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 44.4% |
| Values | Daily Returns |
BBB Foods vs. Meiwu Technology Co
Performance |
| Timeline |
| BBB Foods |
| Meiwu Technology |
BBB Foods and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BBB Foods and Meiwu Technology
The main advantage of trading using opposite BBB Foods and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BBB Foods 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.| BBB Foods vs. Kaltura | BBB Foods vs. Analog Devices | BBB Foods vs. Sabra Healthcare REIT | BBB Foods vs. Amkor Technology |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |