Correlation Between Meiwu Technology and Continental Resources
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Continental Resources 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 Continental Resources 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 Continental Resources, you can compare the effects of market volatilities on Meiwu Technology and Continental Resources 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 Continental Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Continental Resources.
Diversification Opportunities for Meiwu Technology and Continental Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Meiwu and Continental is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Continental Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Continental Resources 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 Continental Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Continental Resources has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Continental Resources go up and down completely randomly.
Pair Corralation between Meiwu Technology and Continental Resources
If you would invest 78.00 in Meiwu Technology Co on September 5, 2024 and sell it today you would earn a total of 17.00 from holding Meiwu Technology Co or generate 21.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Meiwu Technology Co vs. Continental Resources
Performance |
| Timeline |
| Meiwu Technology |
| Continental Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Meiwu Technology and Continental Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Continental Resources
The main advantage of trading using opposite Meiwu Technology and Continental Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Continental Resources 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 Continental Resources will offset losses from the drop in Continental Resources' long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Continental Resources vs. Global Ship Lease | Continental Resources vs. Air Lease | Continental Resources vs. ON Semiconductor | Continental Resources vs. Elmos Semiconductor SE |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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