Correlation Between Meiwu Technology and Global Ship
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Global Ship 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 Ship 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 Ship Lease, you can compare the effects of market volatilities on Meiwu Technology and Global Ship 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 Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Global Ship.
Diversification Opportunities for Meiwu Technology and Global Ship
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meiwu and Global is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease 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 Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Global Ship go up and down completely randomly.
Pair Corralation between Meiwu Technology and Global Ship
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 5.28 times more return on investment than Global Ship. However, Meiwu Technology is 5.28 times more volatile than Global Ship Lease. It trades about 0.24 of its potential returns per unit of risk. Global Ship Lease is currently generating about -0.02 per unit of risk. If you would invest 81.00 in Meiwu Technology Co on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Meiwu Technology Co or generate 18.52% 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. Global Ship Lease
Performance |
| Timeline |
| Meiwu Technology |
| Global Ship Lease |
Meiwu Technology and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Global Ship
The main advantage of trading using opposite Meiwu Technology and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Global Ship 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 Ship will offset losses from the drop in Global Ship's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Global Ship vs. Safe Bulkers | Global Ship vs. Diana Shipping | Global Ship vs. Costamare | Global Ship vs. Safe Bulkers |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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