Correlation Between Meiwu Technology and MGIC Investment
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and MGIC Investment 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 MGIC Investment 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 MGIC Investment Corp, you can compare the effects of market volatilities on Meiwu Technology and MGIC Investment 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 MGIC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and MGIC Investment.
Diversification Opportunities for Meiwu Technology and MGIC Investment
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Meiwu and MGIC is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and MGIC Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGIC Investment Corp 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 MGIC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGIC Investment Corp has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and MGIC Investment go up and down completely randomly.
Pair Corralation between Meiwu Technology and MGIC Investment
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 3.45 times more return on investment than MGIC Investment. However, Meiwu Technology is 3.45 times more volatile than MGIC Investment Corp. It trades about 0.55 of its potential returns per unit of risk. MGIC Investment Corp is currently generating about 0.0 per unit of risk. If you would invest 79.00 in Meiwu Technology Co on September 12, 2024 and sell it today you would earn a total of 55.50 from holding Meiwu Technology Co or generate 70.25% 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. MGIC Investment Corp
Performance |
| Timeline |
| Meiwu Technology |
| MGIC Investment Corp |
Meiwu Technology and MGIC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and MGIC Investment
The main advantage of trading using opposite Meiwu Technology and MGIC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, MGIC Investment 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 MGIC Investment will offset losses from the drop in MGIC Investment's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| MGIC Investment vs. MBIA Inc | MGIC Investment vs. NMI Holdings | MGIC Investment vs. Essent Group | MGIC Investment vs. Assured Guaranty |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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