Correlation Between Meiwu Technology and ABPRO P
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and ABPRO P 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 Meiwu Technology and ABPRO P into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meiwu Technology Co and ABPRO P, you can compare the effects of market volatilities on Meiwu Technology and ABPRO P 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 Meiwu Technology with a short position of ABPRO P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and ABPRO P.
Diversification Opportunities for Meiwu Technology and ABPRO P
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meiwu and ABPRO is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and ABPRO P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABPRO P and Meiwu 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 Meiwu Technology Co are associated (or correlated) with ABPRO P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABPRO P has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and ABPRO P go up and down completely randomly.
Pair Corralation between Meiwu Technology and ABPRO P
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.3 times more return on investment than ABPRO P. However, Meiwu Technology Co is 3.34 times less risky than ABPRO P. It trades about 0.24 of its potential returns per unit of risk. ABPRO P is currently generating about -0.5 per unit of risk. If you would invest 81.00 in Meiwu Technology Co on August 30, 2024 and sell it today you would earn a total of 15.00 from holding Meiwu Technology Co or generate 18.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. ABPRO P
Performance |
| Timeline |
| Meiwu Technology |
| ABPRO P |
Meiwu Technology and ABPRO P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and ABPRO P
The main advantage of trading using opposite Meiwu Technology and ABPRO P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, ABPRO P 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 ABPRO P will offset losses from the drop in ABPRO P's long position.| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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