Correlation Between Meiwu Technology and Aegon NV
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Aegon NV 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 Aegon NV 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 Aegon NV ADR, you can compare the effects of market volatilities on Meiwu Technology and Aegon NV 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 Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Aegon NV.
Diversification Opportunities for Meiwu Technology and Aegon NV
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Meiwu and Aegon is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Aegon NV ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV ADR 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 Aegon NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon NV ADR has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Aegon NV go up and down completely randomly.
Pair Corralation between Meiwu Technology and Aegon NV
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 3.09 times more return on investment than Aegon NV. However, Meiwu Technology is 3.09 times more volatile than Aegon NV ADR. It trades about 0.55 of its potential returns per unit of risk. Aegon NV ADR is currently generating about -0.1 per unit of risk. If you would invest 79.00 in Meiwu Technology Co on September 12, 2024 and sell it today you would earn a total of 55.50 from holding Meiwu Technology Co or generate 70.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Meiwu Technology Co vs. Aegon NV ADR
Performance |
| Timeline |
| Meiwu Technology |
| Aegon NV ADR |
Meiwu Technology and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Aegon NV
The main advantage of trading using opposite Meiwu Technology and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Aegon NV 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 Aegon NV will offset losses from the drop in Aegon NV's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Aegon NV vs. Hartford Financial Services | Aegon NV vs. Goosehead Insurance | Aegon NV vs. International General Insurance | Aegon NV vs. Enstar Group Limited |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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