Correlation Between Meiwu Technology and KVH Industries
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and KVH Industries 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 KVH Industries 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 KVH Industries, you can compare the effects of market volatilities on Meiwu Technology and KVH Industries 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 KVH Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and KVH Industries.
Diversification Opportunities for Meiwu Technology and KVH Industries
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Meiwu and KVH is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and KVH Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KVH Industries 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 KVH Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KVH Industries has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and KVH Industries go up and down completely randomly.
Pair Corralation between Meiwu Technology and KVH Industries
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 2.99 times more return on investment than KVH Industries. However, Meiwu Technology is 2.99 times more volatile than KVH Industries. It trades about -0.01 of its potential returns per unit of risk. KVH Industries is currently generating about -0.03 per unit of risk. If you would invest 788.00 in Meiwu Technology Co on August 31, 2024 and sell it today you would lose (688.00) from holding Meiwu Technology Co or give up 87.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Meiwu Technology Co vs. KVH Industries
Performance |
| Timeline |
| Meiwu Technology |
| KVH Industries |
Meiwu Technology and KVH Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and KVH Industries
The main advantage of trading using opposite Meiwu Technology and KVH Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, KVH Industries 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 KVH Industries will offset losses from the drop in KVH Industries' long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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