Correlation Between Meiwu Technology and Global Atomic
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Global Atomic 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 Global Atomic 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 Global Atomic Corp, you can compare the effects of market volatilities on Meiwu Technology and Global Atomic 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 Global Atomic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Global Atomic.
Diversification Opportunities for Meiwu Technology and Global Atomic
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meiwu and Global is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Global Atomic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Atomic Corp 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 Global Atomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Atomic Corp has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Global Atomic go up and down completely randomly.
Pair Corralation between Meiwu Technology and Global Atomic
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 2.29 times more return on investment than Global Atomic. However, Meiwu Technology is 2.29 times more volatile than Global Atomic Corp. It trades about 0.01 of its potential returns per unit of risk. Global Atomic Corp is currently generating about -0.05 per unit of risk. If you would invest 303.00 in Meiwu Technology Co on October 21, 2024 and sell it today you would lose (266.00) from holding Meiwu Technology Co or give up 87.79% 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. Global Atomic Corp
Performance |
| Timeline |
| Meiwu Technology |
| Global Atomic Corp |
Meiwu Technology and Global Atomic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Global Atomic
The main advantage of trading using opposite Meiwu Technology and Global Atomic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Global Atomic 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 Global Atomic will offset losses from the drop in Global Atomic's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Global Atomic vs. NGEx Minerals | Global Atomic vs. Boss Resources | Global Atomic vs. Forum Energy Metals | Global Atomic vs. Kraken Energy 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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