Correlation Between Meiwu Technology and Lipocine
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Lipocine 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 Lipocine 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 Lipocine, you can compare the effects of market volatilities on Meiwu Technology and Lipocine 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 Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Lipocine.
Diversification Opportunities for Meiwu Technology and Lipocine
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and Lipocine is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine 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 Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Lipocine go up and down completely randomly.
Pair Corralation between Meiwu Technology and Lipocine
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Lipocine. In addition to that, Meiwu Technology is 1.71 times more volatile than Lipocine. It trades about -0.01 of its total potential returns per unit of risk. Lipocine is currently generating about 0.03 per unit of volatility. If you would invest 443.00 in Lipocine on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Lipocine or generate 2.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Lipocine
Performance |
| Timeline |
| Meiwu Technology |
| Lipocine |
Meiwu Technology and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Lipocine
The main advantage of trading using opposite Meiwu Technology and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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