Correlation Between Meiwu Technology and BAIYU Holdings
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and BAIYU Holdings 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 BAIYU Holdings 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 BAIYU Holdings, you can compare the effects of market volatilities on Meiwu Technology and BAIYU Holdings 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 BAIYU Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and BAIYU Holdings.
Diversification Opportunities for Meiwu Technology and BAIYU Holdings
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Meiwu and BAIYU is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and BAIYU Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAIYU Holdings 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 BAIYU Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAIYU Holdings has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and BAIYU Holdings go up and down completely randomly.
Pair Corralation between Meiwu Technology and BAIYU Holdings
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.84 times more return on investment than BAIYU Holdings. However, Meiwu Technology Co is 1.19 times less risky than BAIYU Holdings. It trades about 0.32 of its potential returns per unit of risk. BAIYU Holdings is currently generating about -0.15 per unit of risk. If you would invest 78.00 in Meiwu Technology Co on September 2, 2024 and sell it today you would earn a total of 20.00 from holding Meiwu Technology Co or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
Meiwu Technology Co vs. BAIYU Holdings
Performance |
| Timeline |
| Meiwu Technology |
| BAIYU Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Meiwu Technology and BAIYU Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and BAIYU Holdings
The main advantage of trading using opposite Meiwu Technology and BAIYU Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, BAIYU Holdings 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 BAIYU Holdings will offset losses from the drop in BAIYU Holdings' long position.| Meiwu Technology vs. BJs Wholesale Club | Meiwu Technology vs. Dollar General | Meiwu Technology vs. Grocery Outlet Holding | Meiwu Technology vs. Kroger Company |
| BAIYU Holdings vs. WiMi Hologram Cloud | BAIYU Holdings vs. Wicket Gaming AB | BAIYU Holdings vs. Digi International | BAIYU Holdings vs. Radcom |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |