Correlation Between Meiwu Technology and Live Ventures
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Live Ventures 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 Live Ventures 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 Live Ventures, you can compare the effects of market volatilities on Meiwu Technology and Live Ventures 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 Live Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Live Ventures.
Diversification Opportunities for Meiwu Technology and Live Ventures
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meiwu and Live is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures 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 Live Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Ventures has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Live Ventures go up and down completely randomly.
Pair Corralation between Meiwu Technology and Live Ventures
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.63 times more return on investment than Live Ventures. However, Meiwu Technology Co is 1.6 times less risky than Live Ventures. It trades about 0.11 of its potential returns per unit of risk. Live Ventures is currently generating about 0.04 per unit of risk. If you would invest 79.00 in Meiwu Technology Co on August 26, 2024 and sell it today you would earn a total of 4.00 from holding Meiwu Technology Co or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Live Ventures
Performance |
| Timeline |
| Meiwu Technology |
| Live Ventures |
Meiwu Technology and Live Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Live Ventures
The main advantage of trading using opposite Meiwu Technology and Live Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Live Ventures 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 Live Ventures will offset losses from the drop in Live Ventures' long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Haverty Furniture Companies | Live Ventures vs. Kingfisher plc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |