Correlation Between Meiwu Technology and Elutia
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Elutia 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 Elutia 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 Elutia Inc, you can compare the effects of market volatilities on Meiwu Technology and Elutia 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 Elutia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Elutia.
Diversification Opportunities for Meiwu Technology and Elutia
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meiwu and Elutia is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Elutia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elutia 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 Elutia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elutia Inc has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Elutia go up and down completely randomly.
Pair Corralation between Meiwu Technology and Elutia
Considering the 90-day investment horizon Meiwu Technology is expected to generate 1.99 times less return on investment than Elutia. In addition to that, Meiwu Technology is 1.28 times more volatile than Elutia Inc. It trades about 0.02 of its total potential returns per unit of risk. Elutia Inc is currently generating about 0.04 per unit of volatility. If you would invest 403.00 in Elutia Inc on September 24, 2024 and sell it today you would earn a total of 81.00 from holding Elutia Inc or generate 20.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Elutia Inc
Performance |
| Timeline |
| Meiwu Technology |
| Elutia Inc |
Meiwu Technology and Elutia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Elutia
The main advantage of trading using opposite Meiwu Technology and Elutia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Elutia 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 Elutia will offset losses from the drop in Elutia's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Elutia vs. BioNTech SE | Elutia vs. National Beverage Corp | Elutia vs. Senmiao Technology | Elutia vs. ScanSource |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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