Correlation Between Meiwu Technology and Air Lease
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Air Lease 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 Air Lease 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 Air Lease, you can compare the effects of market volatilities on Meiwu Technology and Air Lease 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 Air Lease. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Air Lease.
Diversification Opportunities for Meiwu Technology and Air Lease
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Meiwu and Air is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Air Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Lease 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 Air Lease. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Lease has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Air Lease go up and down completely randomly.
Pair Corralation between Meiwu Technology and Air Lease
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Air Lease. In addition to that, Meiwu Technology is 5.32 times more volatile than Air Lease. It trades about -0.02 of its total potential returns per unit of risk. Air Lease is currently generating about 0.04 per unit of volatility. If you would invest 3,708 in Air Lease on September 2, 2024 and sell it today you would earn a total of 1,382 from holding Air Lease or generate 37.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Air Lease
Performance |
| Timeline |
| Meiwu Technology |
| Air Lease |
Meiwu Technology and Air Lease Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Air Lease
The main advantage of trading using opposite Meiwu Technology and Air Lease positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Air Lease 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 Air Lease will offset losses from the drop in Air Lease's long position.| Meiwu Technology vs. BJs Wholesale Club | Meiwu Technology vs. Dollar General | Meiwu Technology vs. Grocery Outlet Holding | Meiwu Technology vs. Kroger Company |
| Air Lease vs. Alta Equipment Group | Air Lease vs. McGrath RentCorp | Air Lease vs. Herc Holdings | Air Lease vs. HE Equipment Services |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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