Correlation Between Meiwu Technology and JD Sports
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and JD Sports 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 JD Sports 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 JD Sports Fashion, you can compare the effects of market volatilities on Meiwu Technology and JD Sports 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 JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and JD Sports.
Diversification Opportunities for Meiwu Technology and JD Sports
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Meiwu and JDSPY is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion 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 JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and JD Sports go up and down completely randomly.
Pair Corralation between Meiwu Technology and JD Sports
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.61 times more return on investment than JD Sports. However, Meiwu Technology Co is 1.63 times less risky than JD Sports. It trades about 0.29 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.16 per unit of risk. If you would invest 81.00 in Meiwu Technology Co on August 30, 2024 and sell it today you would earn a total of 18.99 from holding Meiwu Technology Co or generate 23.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. JD Sports Fashion
Performance |
| Timeline |
| Meiwu Technology |
| JD Sports Fashion |
Meiwu Technology and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and JD Sports
The main advantage of trading using opposite Meiwu Technology and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |