Correlation Between Meiwu Technology and LightInTheBox Holding
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and LightInTheBox Holding 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 LightInTheBox Holding 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 LightInTheBox Holding Co, you can compare the effects of market volatilities on Meiwu Technology and LightInTheBox Holding 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 LightInTheBox Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and LightInTheBox Holding.
Diversification Opportunities for Meiwu Technology and LightInTheBox Holding
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Meiwu and LightInTheBox is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and LightInTheBox Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LightInTheBox Holding 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 LightInTheBox Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LightInTheBox Holding has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and LightInTheBox Holding go up and down completely randomly.
Pair Corralation between Meiwu Technology and LightInTheBox Holding
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 1.05 times more return on investment than LightInTheBox Holding. However, Meiwu Technology is 1.05 times more volatile than LightInTheBox Holding Co. It trades about 0.32 of its potential returns per unit of risk. LightInTheBox Holding Co is currently generating about -0.1 per unit of risk. If you would invest 79.00 in Meiwu Technology Co on August 31, 2024 and sell it today you would earn a total of 21.00 from holding Meiwu Technology Co or generate 26.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. LightInTheBox Holding Co
Performance |
| Timeline |
| Meiwu Technology |
| LightInTheBox Holding |
Meiwu Technology and LightInTheBox Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and LightInTheBox Holding
The main advantage of trading using opposite Meiwu Technology and LightInTheBox Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, LightInTheBox Holding 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 LightInTheBox Holding will offset losses from the drop in LightInTheBox Holding's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| LightInTheBox Holding vs. Kidpik Corp | LightInTheBox Holding vs. Qurate Retail Series | LightInTheBox Holding vs. Natural Health Trend | LightInTheBox Holding vs. Liquidity Services |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |