Correlation Between Meiwu Technology and NH Foods
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and NH Foods 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 NH Foods 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 NH Foods Ltd, you can compare the effects of market volatilities on Meiwu Technology and NH Foods 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 NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and NH Foods.
Diversification Opportunities for Meiwu Technology and NH Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Meiwu and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods 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 NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and NH Foods go up and down completely randomly.
Pair Corralation between Meiwu Technology and NH Foods
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the NH Foods. In addition to that, Meiwu Technology is 19.53 times more volatile than NH Foods Ltd. It trades about 0.0 of its total potential returns per unit of risk. NH Foods Ltd is currently generating about 0.07 per unit of volatility. If you would invest 1,509 in NH Foods Ltd on August 31, 2024 and sell it today you would earn a total of 191.00 from holding NH Foods Ltd or generate 12.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. NH Foods Ltd
Performance |
| Timeline |
| Meiwu Technology |
| NH Foods |
Meiwu Technology and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and NH Foods
The main advantage of trading using opposite Meiwu Technology and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| NH Foods vs. The A2 Milk | NH Foods vs. Altavoz Entertainment | NH Foods vs. Artisan Consumer Goods | NH Foods vs. General Mills |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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