Correlation Between Meiwu Technology and China Aircraft
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and China Aircraft 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 China Aircraft 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 China Aircraft Leasing, you can compare the effects of market volatilities on Meiwu Technology and China Aircraft 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 China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and China Aircraft.
Diversification Opportunities for Meiwu Technology and China Aircraft
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meiwu and China is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and China Aircraft Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aircraft Leasing 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 China Aircraft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aircraft Leasing has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and China Aircraft go up and down completely randomly.
Pair Corralation between Meiwu Technology and China Aircraft
If you would invest 81.00 in Meiwu Technology Co on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Meiwu Technology Co or generate 18.52% 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. China Aircraft Leasing
Performance |
| Timeline |
| Meiwu Technology |
| China Aircraft Leasing |
Meiwu Technology and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and China Aircraft
The main advantage of trading using opposite Meiwu Technology and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, China Aircraft 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 China Aircraft will offset losses from the drop in China Aircraft's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| China Aircraft vs. Senmiao Technology | China Aircraft vs. BCE Inc | China Aircraft vs. Olympic Steel | China Aircraft vs. WiMi Hologram Cloud |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |