Correlation Between Meiwu Technology and AKITA Drilling
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and AKITA Drilling 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 AKITA Drilling 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 AKITA Drilling, you can compare the effects of market volatilities on Meiwu Technology and AKITA Drilling 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 AKITA Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and AKITA Drilling.
Diversification Opportunities for Meiwu Technology and AKITA Drilling
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and AKITA is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and AKITA Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AKITA Drilling 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 AKITA Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AKITA Drilling has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and AKITA Drilling go up and down completely randomly.
Pair Corralation between Meiwu Technology and AKITA Drilling
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the AKITA Drilling. In addition to that, Meiwu Technology is 2.77 times more volatile than AKITA Drilling. It trades about -0.02 of its total potential returns per unit of risk. AKITA Drilling is currently generating about 0.0 per unit of volatility. If you would invest 140.00 in AKITA Drilling on August 27, 2024 and sell it today you would lose (22.00) from holding AKITA Drilling or give up 15.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. AKITA Drilling
Performance |
| Timeline |
| Meiwu Technology |
| AKITA Drilling |
Meiwu Technology and AKITA Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and AKITA Drilling
The main advantage of trading using opposite Meiwu Technology and AKITA Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, AKITA Drilling 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 AKITA Drilling will offset losses from the drop in AKITA Drilling's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| AKITA Drilling vs. Petroleo Brasileiro Petrobras | AKITA Drilling vs. Equinor ASA ADR | AKITA Drilling vs. Eni SpA ADR | AKITA Drilling vs. YPF Sociedad Anonima |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |