Correlation Between Meiwu Technology and Ault Alliance
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Ault Alliance 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 Ault Alliance 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 Ault Alliance, you can compare the effects of market volatilities on Meiwu Technology and Ault Alliance 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 Ault Alliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Ault Alliance.
Diversification Opportunities for Meiwu Technology and Ault Alliance
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meiwu and Ault is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Ault Alliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ault Alliance 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 Ault Alliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ault Alliance has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Ault Alliance go up and down completely randomly.
Pair Corralation between Meiwu Technology and Ault Alliance
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 1.16 times more return on investment than Ault Alliance. However, Meiwu Technology is 1.16 times more volatile than Ault Alliance. It trades about -0.02 of its potential returns per unit of risk. Ault Alliance is currently generating about -0.18 per unit of risk. If you would invest 6,405 in Meiwu Technology Co on September 3, 2024 and sell it today you would lose (6,307) from holding Meiwu Technology Co or give up 98.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.48% |
| Values | Daily Returns |
Meiwu Technology Co vs. Ault Alliance
Performance |
| Timeline |
| Meiwu Technology |
| Ault Alliance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Meiwu Technology and Ault Alliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Ault Alliance
The main advantage of trading using opposite Meiwu Technology and Ault Alliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Ault Alliance 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 Ault Alliance will offset losses from the drop in Ault Alliance's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Ault Alliance vs. Meiwu Technology Co | Ault Alliance vs. Reservoir Media | Ault Alliance vs. Weibo Corp | Ault Alliance vs. NETGEAR |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |