Correlation Between Meiwu Technology and Mesa Air
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Mesa Air 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 Mesa Air 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 Mesa Air Group, you can compare the effects of market volatilities on Meiwu Technology and Mesa Air 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 Mesa Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Mesa Air.
Diversification Opportunities for Meiwu Technology and Mesa Air
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meiwu and Mesa is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Mesa Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesa Air 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 Mesa Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesa Air Group has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Mesa Air go up and down completely randomly.
Pair Corralation between Meiwu Technology and Mesa Air
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.92 times more return on investment than Mesa Air. However, Meiwu Technology Co is 1.09 times less risky than Mesa Air. It trades about 0.08 of its potential returns per unit of risk. Mesa Air Group is currently generating about -0.12 per unit of risk. If you would invest 80.00 in Meiwu Technology Co on August 24, 2024 and sell it today you would earn a total of 3.00 from holding Meiwu Technology Co or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Mesa Air Group
Performance |
| Timeline |
| Meiwu Technology |
| Mesa Air Group |
Meiwu Technology and Mesa Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Mesa Air
The main advantage of trading using opposite Meiwu Technology and Mesa Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Mesa Air 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 Mesa Air will offset losses from the drop in Mesa Air's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |