Correlation Between Meiwu Technology and Natural Health
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Natural Health 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 Natural Health 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 Natural Health Trend, you can compare the effects of market volatilities on Meiwu Technology and Natural Health 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 Natural Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Natural Health.
Diversification Opportunities for Meiwu Technology and Natural Health
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Meiwu and Natural is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Natural Health Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Health Trend 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 Natural Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Health Trend has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Natural Health go up and down completely randomly.
Pair Corralation between Meiwu Technology and Natural Health
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Natural Health. In addition to that, Meiwu Technology is 4.91 times more volatile than Natural Health Trend. It trades about -0.01 of its total potential returns per unit of risk. Natural Health Trend is currently generating about 0.05 per unit of volatility. If you would invest 439.00 in Natural Health Trend on August 27, 2024 and sell it today you would earn a total of 124.00 from holding Natural Health Trend or generate 28.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Natural Health Trend
Performance |
| Timeline |
| Meiwu Technology |
| Natural Health Trend |
Meiwu Technology and Natural Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Natural Health
The main advantage of trading using opposite Meiwu Technology and Natural Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Natural Health 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 Natural Health will offset losses from the drop in Natural Health's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Natural Health vs. Inter Parfums | Natural Health vs. European Wax Center | Natural Health vs. Yatsen Holding | Natural Health vs. Edgewell Personal Care |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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