Correlation Between Meiwu Technology and Oatly Group
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Oatly Group 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 Oatly Group 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 Oatly Group AB, you can compare the effects of market volatilities on Meiwu Technology and Oatly Group 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 Oatly Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Oatly Group.
Diversification Opportunities for Meiwu Technology and Oatly Group
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and Oatly is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Oatly Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oatly Group AB 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 Oatly Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oatly Group AB has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Oatly Group go up and down completely randomly.
Pair Corralation between Meiwu Technology and Oatly Group
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 0.84 times more return on investment than Oatly Group. However, Meiwu Technology Co is 1.2 times less risky than Oatly Group. It trades about 0.2 of its potential returns per unit of risk. Oatly Group AB is currently generating about -0.04 per unit of risk. If you would invest 85.00 in Meiwu Technology Co on September 12, 2024 and sell it today you would earn a total of 49.50 from holding Meiwu Technology Co or generate 58.24% 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. Oatly Group AB
Performance |
| Timeline |
| Meiwu Technology |
| Oatly Group AB |
Meiwu Technology and Oatly Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Oatly Group
The main advantage of trading using opposite Meiwu Technology and Oatly Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Oatly Group 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 Oatly Group will offset losses from the drop in Oatly Group's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stocks Directory Find actively traded stocks across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |