Correlation Between Meiwu Technology and Asure Software
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Asure Software 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 Asure Software 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 Asure Software, you can compare the effects of market volatilities on Meiwu Technology and Asure Software 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 Asure Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Asure Software.
Diversification Opportunities for Meiwu Technology and Asure Software
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and Asure is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Asure Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asure Software 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 Asure Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asure Software has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Asure Software go up and down completely randomly.
Pair Corralation between Meiwu Technology and Asure Software
Considering the 90-day investment horizon Meiwu Technology is expected to generate 1.45 times less return on investment than Asure Software. In addition to that, Meiwu Technology is 3.5 times more volatile than Asure Software. It trades about 0.01 of its total potential returns per unit of risk. Asure Software is currently generating about 0.05 per unit of volatility. If you would invest 757.00 in Asure Software on August 24, 2024 and sell it today you would earn a total of 195.00 from holding Asure Software or generate 25.76% 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. Asure Software
Performance |
| Timeline |
| Meiwu Technology |
| Asure Software |
Meiwu Technology and Asure Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Asure Software
The main advantage of trading using opposite Meiwu Technology and Asure Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Asure Software 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 Asure Software will offset losses from the drop in Asure Software's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Asure Software vs. Alkami Technology | Asure Software vs. Blackbaud | Asure Software vs. Enfusion | Asure Software vs. Clearwater Analytics Holdings |
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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