Correlation Between 682691AC4 and Meiwu Technology

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Can any of the company-specific risk be diversified away by investing in both 682691AC4 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 682691AC4 and Meiwu Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US682691AC47 and Meiwu Technology Co, you can compare the effects of market volatilities on 682691AC4 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 682691AC4 with a short position of Meiwu Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of 682691AC4 and Meiwu Technology.

Diversification Opportunities for 682691AC4 and Meiwu Technology

-0.76
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between 682691AC4 and Meiwu is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding US682691AC47 and Meiwu Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meiwu Technology and 682691AC4 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 US682691AC47 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 682691AC4 i.e., 682691AC4 and Meiwu Technology go up and down completely randomly.

Pair Corralation between 682691AC4 and Meiwu Technology

Assuming the 90 days trading horizon US682691AC47 is expected to under-perform the Meiwu Technology. But the bond apears to be less risky and, when comparing its historical volatility, US682691AC47 is 9.69 times less risky than Meiwu Technology. The bond trades about -0.01 of its potential returns per unit of risk. The Meiwu Technology Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  697.00  in Meiwu Technology Co on September 12, 2024 and sell it today you would lose (568.00) from holding Meiwu Technology Co or give up 81.49% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy94.89%
ValuesDaily Returns

US682691AC47  vs.  Meiwu Technology Co

 Performance 
       Timeline  
US682691AC47 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days US682691AC47 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for US682691AC47 investors.
Meiwu Technology 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Meiwu Technology Co are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Meiwu Technology showed solid returns over the last few months and may actually be approaching a breakup point.

682691AC4 and Meiwu Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with 682691AC4 and Meiwu Technology

The main advantage of trading using opposite 682691AC4 and Meiwu Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 682691AC4 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.
The idea behind US682691AC47 and Meiwu Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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