Correlation Between Meiwu Technology and Mill City
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Mill City 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 Mill City 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 Mill City Ventures, you can compare the effects of market volatilities on Meiwu Technology and Mill City 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 Mill City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Mill City.
Diversification Opportunities for Meiwu Technology and Mill City
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Meiwu and Mill is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Mill City Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mill City 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 Mill City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mill City Ventures has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Mill City go up and down completely randomly.
Pair Corralation between Meiwu Technology and Mill City
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.9 times more return on investment than Mill City. However, Meiwu Technology Co is 1.11 times less risky than Mill City. It trades about 0.34 of its potential returns per unit of risk. Mill City Ventures is currently generating about -0.03 per unit of risk. If you would invest 77.00 in Meiwu Technology Co on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Meiwu Technology Co or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Mill City Ventures
Performance |
| Timeline |
| Meiwu Technology |
| Mill City Ventures |
Meiwu Technology and Mill City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Mill City
The main advantage of trading using opposite Meiwu Technology and Mill City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Mill City 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 Mill City will offset losses from the drop in Mill City's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Mill City vs. Consumer Portfolio Services | Mill City vs. Atlanticus Holdings Corp | Mill City vs. Nelnet Inc | Mill City vs. Senmiao Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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