Correlation Between Meiwu Technology and Landcadia Holdings
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Landcadia Holdings 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 Landcadia Holdings 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 Landcadia Holdings II, you can compare the effects of market volatilities on Meiwu Technology and Landcadia Holdings 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 Landcadia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Landcadia Holdings.
Diversification Opportunities for Meiwu Technology and Landcadia Holdings
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Meiwu and Landcadia is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Landcadia Holdings II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landcadia Holdings 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 Landcadia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landcadia Holdings has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Landcadia Holdings go up and down completely randomly.
Pair Corralation between Meiwu Technology and Landcadia Holdings
If you would invest 263.00 in Meiwu Technology Co on September 3, 2024 and sell it today you would lose (165.00) from holding Meiwu Technology Co or give up 62.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Meiwu Technology Co vs. Landcadia Holdings II
Performance |
| Timeline |
| Meiwu Technology |
| Landcadia Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Meiwu Technology and Landcadia Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Landcadia Holdings
The main advantage of trading using opposite Meiwu Technology and Landcadia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Landcadia Holdings 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 Landcadia Holdings will offset losses from the drop in Landcadia Holdings' long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Landcadia Holdings vs. Meiwu Technology Co | Landcadia Holdings vs. MGIC Investment Corp | Landcadia Holdings vs. LB Foster | Landcadia Holdings vs. Employers Holdings |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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