Correlation Between Meiwu Technology and Gyre Therapeutics
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Gyre Therapeutics 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 Gyre Therapeutics 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 Gyre Therapeutics, you can compare the effects of market volatilities on Meiwu Technology and Gyre Therapeutics 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 Gyre Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Gyre Therapeutics.
Diversification Opportunities for Meiwu Technology and Gyre Therapeutics
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and Gyre is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Gyre Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gyre Therapeutics 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 Gyre Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gyre Therapeutics has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Gyre Therapeutics go up and down completely randomly.
Pair Corralation between Meiwu Technology and Gyre Therapeutics
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 1.35 times more return on investment than Gyre Therapeutics. However, Meiwu Technology is 1.35 times more volatile than Gyre Therapeutics. It trades about 0.02 of its potential returns per unit of risk. Gyre Therapeutics is currently generating about 0.0 per unit of risk. If you would invest 252.00 in Meiwu Technology Co on September 4, 2024 and sell it today you would lose (157.00) from holding Meiwu Technology Co or give up 62.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Gyre Therapeutics
Performance |
| Timeline |
| Meiwu Technology |
| Gyre Therapeutics |
Meiwu Technology and Gyre Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Gyre Therapeutics
The main advantage of trading using opposite Meiwu Technology and Gyre Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Gyre Therapeutics 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 Gyre Therapeutics will offset losses from the drop in Gyre Therapeutics' long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Gyre Therapeutics vs. Meiwu Technology Co | Gyre Therapeutics vs. U Power Limited | Gyre Therapeutics vs. Lucid Group | Gyre Therapeutics vs. Wabash National |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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