Correlation Between Meiwu Technology and MercadoLibre
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and MercadoLibre 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 MercadoLibre 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 MercadoLibre, you can compare the effects of market volatilities on Meiwu Technology and MercadoLibre 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 MercadoLibre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and MercadoLibre.
Diversification Opportunities for Meiwu Technology and MercadoLibre
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Meiwu and MercadoLibre is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and MercadoLibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MercadoLibre 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 MercadoLibre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MercadoLibre has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and MercadoLibre go up and down completely randomly.
Pair Corralation between Meiwu Technology and MercadoLibre
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the MercadoLibre. In addition to that, Meiwu Technology is 3.91 times more volatile than MercadoLibre. It trades about -0.02 of its total potential returns per unit of risk. MercadoLibre is currently generating about 0.08 per unit of volatility. If you would invest 88,190 in MercadoLibre on August 25, 2024 and sell it today you would earn a total of 112,310 from holding MercadoLibre or generate 127.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Meiwu Technology Co vs. MercadoLibre
Performance |
| Timeline |
| Meiwu Technology |
| MercadoLibre |
Meiwu Technology and MercadoLibre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and MercadoLibre
The main advantage of trading using opposite Meiwu Technology and MercadoLibre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, MercadoLibre 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 MercadoLibre will offset losses from the drop in MercadoLibre's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| MercadoLibre vs. PDD Holdings | MercadoLibre vs. JD Inc Adr | MercadoLibre vs. Alibaba Group Holding | MercadoLibre vs. Global E Online |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |