Correlation Between Trupanion and Meiwu Technology
Can any of the company-specific risk be diversified away by investing in both Trupanion 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 Trupanion and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trupanion and Meiwu Technology Co, you can compare the effects of market volatilities on Trupanion 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 Trupanion with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trupanion and Meiwu Technology.
Diversification Opportunities for Trupanion and Meiwu Technology
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Trupanion and Meiwu is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Trupanion and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and Trupanion 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 Trupanion 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 Trupanion i.e., Trupanion and Meiwu Technology go up and down completely randomly.
Pair Corralation between Trupanion and Meiwu Technology
Given the investment horizon of 90 days Trupanion is expected to generate 14.52 times less return on investment than Meiwu Technology. But when comparing it to its historical volatility, Trupanion is 1.6 times less risky than Meiwu Technology. It trades about 0.06 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.55 of returns per unit of risk over similar time horizon. If you would invest 79.00 in Meiwu Technology Co on September 12, 2024 and sell it today you would earn a total of 55.50 from holding Meiwu Technology Co or generate 70.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trupanion vs. Meiwu Technology Co
Performance |
| Timeline |
| Trupanion |
| Meiwu Technology |
Trupanion and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trupanion and Meiwu Technology
The main advantage of trading using opposite Trupanion and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trupanion 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.| Trupanion vs. First American | Trupanion vs. Assurant | Trupanion vs. NMI Holdings | Trupanion vs. MGIC Investment 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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