Correlation Between Meiwu Technology and Liberty Resources
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Liberty Resources 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 Liberty Resources 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 Liberty Resources Acquisition, you can compare the effects of market volatilities on Meiwu Technology and Liberty Resources 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 Liberty Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Liberty Resources.
Diversification Opportunities for Meiwu Technology and Liberty Resources
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meiwu and Liberty is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Liberty Resources Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liberty Resources 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 Liberty Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liberty Resources has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Liberty Resources go up and down completely randomly.
Pair Corralation between Meiwu Technology and Liberty Resources
If you would invest 82.00 in Meiwu Technology Co on September 2, 2024 and sell it today you would earn a total of 16.00 from holding Meiwu Technology Co or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Meiwu Technology Co vs. Liberty Resources Acquisition
Performance |
| Timeline |
| Meiwu Technology |
| Liberty Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Meiwu Technology and Liberty Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Liberty Resources
The main advantage of trading using opposite Meiwu Technology and Liberty Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Liberty Resources 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 Liberty Resources will offset losses from the drop in Liberty Resources' long position.| Meiwu Technology vs. BJs Wholesale Club | Meiwu Technology vs. Dollar General | Meiwu Technology vs. Grocery Outlet Holding | Meiwu Technology vs. Kroger Company |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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