Correlation Between Meiwu Technology and Dana
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Dana 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 Dana 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 Dana Inc, you can compare the effects of market volatilities on Meiwu Technology and Dana 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 Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Dana.
Diversification Opportunities for Meiwu Technology and Dana
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meiwu and Dana is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc 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 Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Dana go up and down completely randomly.
Pair Corralation between Meiwu Technology and Dana
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Dana. In addition to that, Meiwu Technology is 2.21 times more volatile than Dana Inc. It trades about -0.27 of its total potential returns per unit of risk. Dana Inc is currently generating about -0.26 per unit of volatility. If you would invest 1,428 in Dana Inc on January 5, 2025 and sell it today you would lose (302.00) from holding Dana Inc or give up 21.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Dana Inc
Performance |
| Timeline |
| Meiwu Technology |
| Dana Inc |
Meiwu Technology and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Dana
The main advantage of trading using opposite Meiwu Technology and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Natural Health Trend |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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