Correlation Between American and Meiwu Technology
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By analyzing existing cross correlation between American Axle Manufacturing and Meiwu Technology Co, you can compare the effects of market volatilities on American 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 American with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of American and Meiwu Technology.
Diversification Opportunities for American and Meiwu Technology
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between American and Meiwu is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding American Axle Manufacturing and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and American 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 American Axle Manufacturing 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 American i.e., American and Meiwu Technology go up and down completely randomly.
Pair Corralation between American and Meiwu Technology
Assuming the 90 days trading horizon American is expected to generate 7.94 times less return on investment than Meiwu Technology. But when comparing it to its historical volatility, American Axle Manufacturing is 15.17 times less risky than Meiwu Technology. It trades about 0.03 of its potential returns per unit of risk. Meiwu Technology Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 263.00 in Meiwu Technology Co on September 3, 2024 and sell it today you would lose (165.00) from holding Meiwu Technology Co or give up 62.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.98% |
| Values | Daily Returns |
American Axle Manufacturing vs. Meiwu Technology Co
Performance |
| Timeline |
| American Axle Manufa |
| Meiwu Technology |
American and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American and Meiwu Technology
The main advantage of trading using opposite American and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American 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.| American vs. The Travelers Companies | American vs. GE Aerospace | American vs. Walmart | American vs. Pfizer Inc |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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