Correlation Between Viomi Technology and Man Wah
Can any of the company-specific risk be diversified away by investing in both Viomi Technology and Man Wah 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 Viomi Technology and Man Wah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viomi Technology ADR and Man Wah Holdings, you can compare the effects of market volatilities on Viomi Technology and Man Wah 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 Viomi Technology with a short position of Man Wah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viomi Technology and Man Wah.
Diversification Opportunities for Viomi Technology and Man Wah
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Viomi and Man is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Viomi Technology ADR and Man Wah Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Wah Holdings and Viomi Technology 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 Viomi Technology ADR are associated (or correlated) with Man Wah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Wah Holdings has no effect on the direction of Viomi Technology i.e., Viomi Technology and Man Wah go up and down completely randomly.
Pair Corralation between Viomi Technology and Man Wah
Given the investment horizon of 90 days Viomi Technology ADR is expected to generate 0.96 times more return on investment than Man Wah. However, Viomi Technology ADR is 1.04 times less risky than Man Wah. It trades about 0.12 of its potential returns per unit of risk. Man Wah Holdings is currently generating about -0.04 per unit of risk. If you would invest 83.00 in Viomi Technology ADR on September 3, 2024 and sell it today you would earn a total of 76.00 from holding Viomi Technology ADR or generate 91.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Viomi Technology ADR vs. Man Wah Holdings
Performance |
| Timeline |
| Viomi Technology ADR |
| Man Wah Holdings |
Viomi Technology and Man Wah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viomi Technology and Man Wah
The main advantage of trading using opposite Viomi Technology and Man Wah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viomi Technology position performs unexpectedly, Man Wah 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 Man Wah will offset losses from the drop in Man Wah's long position.| Viomi Technology vs. Bassett Furniture Industries | Viomi Technology vs. Ethan Allen Interiors | Viomi Technology vs. Natuzzi SpA | Viomi Technology vs. Flexsteel Industries |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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