Correlation Between Meiwu Technology and Dragoneer Growth
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Dragoneer Growth 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 Dragoneer Growth 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 Dragoneer Growth Opportunities, you can compare the effects of market volatilities on Meiwu Technology and Dragoneer Growth 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 Dragoneer Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Dragoneer Growth.
Diversification Opportunities for Meiwu Technology and Dragoneer Growth
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Meiwu and Dragoneer is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Dragoneer Growth Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dragoneer Growth Opp 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 Dragoneer Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dragoneer Growth Opp has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Dragoneer Growth go up and down completely randomly.
Pair Corralation between Meiwu Technology and Dragoneer Growth
If you would invest 78.00 in Meiwu Technology Co on September 13, 2024 and sell it today you would earn a total of 66.00 from holding Meiwu Technology Co or generate 84.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Meiwu Technology Co vs. Dragoneer Growth Opportunities
Performance |
| Timeline |
| Meiwu Technology |
| Dragoneer Growth Opp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Meiwu Technology and Dragoneer Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Dragoneer Growth
The main advantage of trading using opposite Meiwu Technology and Dragoneer Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Dragoneer Growth 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 Dragoneer Growth will offset losses from the drop in Dragoneer Growth's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Dragoneer Growth vs. Life Time Group | Dragoneer Growth vs. Playa Hotels Resorts | Dragoneer Growth vs. Aegon NV ADR | Dragoneer Growth vs. Aspen Insurance Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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