Correlation Between Meiwu Technology and Mattel
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Mattel 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 Mattel 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 Mattel Inc, you can compare the effects of market volatilities on Meiwu Technology and Mattel 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 Mattel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Mattel.
Diversification Opportunities for Meiwu Technology and Mattel
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meiwu and Mattel is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Mattel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mattel Inc 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 Mattel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mattel Inc has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Mattel go up and down completely randomly.
Pair Corralation between Meiwu Technology and Mattel
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Mattel. In addition to that, Meiwu Technology is 4.76 times more volatile than Mattel Inc. It trades about -0.01 of its total potential returns per unit of risk. Mattel Inc is currently generating about 0.0 per unit of volatility. If you would invest 2,000 in Mattel Inc on August 28, 2024 and sell it today you would lose (93.00) from holding Mattel Inc or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Mattel Inc
Performance |
| Timeline |
| Meiwu Technology |
| Mattel Inc |
Meiwu Technology and Mattel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Mattel
The main advantage of trading using opposite Meiwu Technology and Mattel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Mattel 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 Mattel will offset losses from the drop in Mattel's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Mattel vs. MCBC Holdings | Mattel vs. Winnebago Industries | Mattel vs. LCI Industries | Mattel vs. Thor Industries |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |