Correlation Between AUTOMATIC and Meiwu Technology
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By analyzing existing cross correlation between AUTOMATIC DATA PROCESSING and Meiwu Technology Co, you can compare the effects of market volatilities on AUTOMATIC 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 AUTOMATIC with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUTOMATIC and Meiwu Technology.
Diversification Opportunities for AUTOMATIC and Meiwu Technology
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AUTOMATIC and Meiwu is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding AUTOMATIC DATA PROCESSING and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and AUTOMATIC 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 AUTOMATIC DATA PROCESSING 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 AUTOMATIC i.e., AUTOMATIC and Meiwu Technology go up and down completely randomly.
Pair Corralation between AUTOMATIC and Meiwu Technology
Assuming the 90 days trading horizon AUTOMATIC DATA PROCESSING is expected to under-perform the Meiwu Technology. But the bond apears to be less risky and, when comparing its historical volatility, AUTOMATIC DATA PROCESSING is 2.74 times less risky than Meiwu Technology. The bond trades about -0.12 of its potential returns per unit of risk. The Meiwu Technology Co is currently generating about 0.52 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 51.00 from holding Meiwu Technology Co or generate 64.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
AUTOMATIC DATA PROCESSING vs. Meiwu Technology Co
Performance |
| Timeline |
| AUTOMATIC DATA PROCESSING |
| Meiwu Technology |
AUTOMATIC and Meiwu Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUTOMATIC and Meiwu Technology
The main advantage of trading using opposite AUTOMATIC and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUTOMATIC 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.| AUTOMATIC vs. Meiwu Technology Co | AUTOMATIC vs. Allegiant Travel | AUTOMATIC vs. Kaltura | AUTOMATIC vs. Mesa Air Group |
| 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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