Correlation Between Meiwu Technology and US Global
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and US Global 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 US Global 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 US Global Investors, you can compare the effects of market volatilities on Meiwu Technology and US Global 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 US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and US Global.
Diversification Opportunities for Meiwu Technology and US Global
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and GROW is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors 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 US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and US Global go up and down completely randomly.
Pair Corralation between Meiwu Technology and US Global
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the US Global. In addition to that, Meiwu Technology is 9.8 times more volatile than US Global Investors. It trades about -0.13 of its total potential returns per unit of risk. US Global Investors is currently generating about 0.03 per unit of volatility. If you would invest 242.00 in US Global Investors on November 28, 2024 and sell it today you would earn a total of 1.00 from holding US Global Investors or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. US Global Investors
Performance |
| Timeline |
| Meiwu Technology |
| US Global Investors |
Meiwu Technology and US Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and US Global
The main advantage of trading using opposite Meiwu Technology and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| US Global vs. Gladstone Investment | US Global vs. PennantPark Floating Rate | US Global vs. Horizon Technology Finance | US Global vs. Stellus Capital Investment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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