Correlation Between Meiwu Technology and Aehr Test
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Aehr Test 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 Aehr Test 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 Aehr Test Systems, you can compare the effects of market volatilities on Meiwu Technology and Aehr Test 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 Aehr Test. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Aehr Test.
Diversification Opportunities for Meiwu Technology and Aehr Test
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and Aehr is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Aehr Test Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aehr Test Systems 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 Aehr Test. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aehr Test Systems has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Aehr Test go up and down completely randomly.
Pair Corralation between Meiwu Technology and Aehr Test
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Aehr Test. In addition to that, Meiwu Technology is 1.72 times more volatile than Aehr Test Systems. It trades about -0.03 of its total potential returns per unit of risk. Aehr Test Systems is currently generating about 0.01 per unit of volatility. If you would invest 2,260 in Aehr Test Systems on September 4, 2024 and sell it today you would lose (990.00) from holding Aehr Test Systems or give up 43.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Aehr Test Systems
Performance |
| Timeline |
| Meiwu Technology |
| Aehr Test Systems |
Meiwu Technology and Aehr Test Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Aehr Test
The main advantage of trading using opposite Meiwu Technology and Aehr Test positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Aehr Test 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 Aehr Test will offset losses from the drop in Aehr Test's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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