Correlation Between Meiwu Technology and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and National CineMedia 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 National CineMedia 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 National CineMedia, you can compare the effects of market volatilities on Meiwu Technology and National CineMedia 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 National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and National CineMedia.
Diversification Opportunities for Meiwu Technology and National CineMedia
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meiwu and National is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia 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 National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and National CineMedia go up and down completely randomly.
Pair Corralation between Meiwu Technology and National CineMedia
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.75 times more return on investment than National CineMedia. However, Meiwu Technology Co is 1.34 times less risky than National CineMedia. It trades about 0.11 of its potential returns per unit of risk. National CineMedia is currently generating about -0.05 per unit of risk. If you would invest 81.00 in Meiwu Technology Co on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Meiwu Technology Co or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. National CineMedia
Performance |
| Timeline |
| Meiwu Technology |
| National CineMedia |
Meiwu Technology and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and National CineMedia
The main advantage of trading using opposite Meiwu Technology and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Impact Fusion International | National CineMedia vs. ZW Data Action |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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