Correlation Between Meiwu Technology and Brand Engagement
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Brand Engagement 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 Brand Engagement 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 Brand Engagement Network, you can compare the effects of market volatilities on Meiwu Technology and Brand Engagement 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 Brand Engagement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Brand Engagement.
Diversification Opportunities for Meiwu Technology and Brand Engagement
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and Brand is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Brand Engagement Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brand Engagement Network 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 Brand Engagement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brand Engagement Network has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Brand Engagement go up and down completely randomly.
Pair Corralation between Meiwu Technology and Brand Engagement
Considering the 90-day investment horizon Meiwu Technology is expected to generate 1.37 times less return on investment than Brand Engagement. But when comparing it to its historical volatility, Meiwu Technology Co is 6.82 times less risky than Brand Engagement. It trades about 0.09 of its potential returns per unit of risk. Brand Engagement Network is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8.00 in Brand Engagement Network on August 30, 2024 and sell it today you would lose (6.37) from holding Brand Engagement Network or give up 79.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.75% |
| Values | Daily Returns |
Meiwu Technology Co vs. Brand Engagement Network
Performance |
| Timeline |
| Meiwu Technology |
| Brand Engagement Network |
Meiwu Technology and Brand Engagement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Brand Engagement
The main advantage of trading using opposite Meiwu Technology and Brand Engagement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Brand Engagement 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 Brand Engagement will offset losses from the drop in Brand Engagement's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Brand Engagement vs. Getty Images Holdings | Brand Engagement vs. ServiceNow | Brand Engagement vs. Sandstorm Gold Ltd | Brand Engagement vs. KVH Industries |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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