Correlation Between Meiwu Technology and Life Time
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Life Time 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 Life Time 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 Life Time Group, you can compare the effects of market volatilities on Meiwu Technology and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Life Time.
Diversification Opportunities for Meiwu Technology and Life Time
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meiwu and Life is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time Group 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Life Time go up and down completely randomly.
Pair Corralation between Meiwu Technology and Life Time
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 2.12 times more return on investment than Life Time. However, Meiwu Technology is 2.12 times more volatile than Life Time Group. It trades about 0.09 of its potential returns per unit of risk. Life Time Group is currently generating about 0.04 per unit of risk. 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 | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Life Time Group
Performance |
| Timeline |
| Meiwu Technology |
| Life Time Group |
Meiwu Technology and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Life Time
The main advantage of trading using opposite Meiwu Technology and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time's long position.| Meiwu Technology vs. BJs Wholesale Club | Meiwu Technology vs. Dollar General | Meiwu Technology vs. Grocery Outlet Holding | Meiwu Technology vs. Kroger Company |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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