Correlation Between Meiwu Technology and Dine Brands
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Dine Brands 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 Dine Brands 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 Dine Brands Global, you can compare the effects of market volatilities on Meiwu Technology and Dine Brands 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 Dine Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Dine Brands.
Diversification Opportunities for Meiwu Technology and Dine Brands
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Meiwu and Dine is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Dine Brands Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dine Brands Global 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 Dine Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dine Brands Global has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Dine Brands go up and down completely randomly.
Pair Corralation between Meiwu Technology and Dine Brands
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Dine Brands. In addition to that, Meiwu Technology is 3.55 times more volatile than Dine Brands Global. It trades about -0.14 of its total potential returns per unit of risk. Dine Brands Global is currently generating about -0.44 per unit of volatility. If you would invest 3,193 in Dine Brands Global on November 28, 2024 and sell it today you would lose (607.00) from holding Dine Brands Global or give up 19.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Dine Brands Global
Performance |
| Timeline |
| Meiwu Technology |
| Dine Brands Global |
Meiwu Technology and Dine Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Dine Brands
The main advantage of trading using opposite Meiwu Technology and Dine Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Dine Brands 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 Dine Brands will offset losses from the drop in Dine Brands' long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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