Correlation Between Meiwu Technology and First Republic
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and First Republic 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 First Republic 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 First Republic Bank, you can compare the effects of market volatilities on Meiwu Technology and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and First Republic.
Diversification Opportunities for Meiwu Technology and First Republic
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Meiwu and First is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and First Republic go up and down completely randomly.
Pair Corralation between Meiwu Technology and First Republic
If you would invest 77.00 in Meiwu Technology Co on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Meiwu Technology Co or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Meiwu Technology Co vs. First Republic Bank
Performance |
| Timeline |
| Meiwu Technology |
| First Republic Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Meiwu Technology and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and First Republic
The main advantage of trading using opposite Meiwu Technology and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| First Republic vs. MACOM Technology Solutions | First Republic vs. Elmos Semiconductor SE | First Republic vs. NioCorp Developments Ltd | First Republic vs. Eldorado Gold Corp |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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