Correlation Between Meiwu Technology and OFX Group
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and OFX 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 OFX 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 OFX Group Ltd, you can compare the effects of market volatilities on Meiwu Technology and OFX 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 OFX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and OFX Group.
Diversification Opportunities for Meiwu Technology and OFX Group
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and OFX is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group 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 OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and OFX Group go up and down completely randomly.
Pair Corralation between Meiwu Technology and OFX Group
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the OFX Group. In addition to that, Meiwu Technology is 2.35 times more volatile than OFX Group Ltd. It trades about -0.02 of its total potential returns per unit of risk. OFX Group Ltd is currently generating about -0.01 per unit of volatility. If you would invest 850.00 in OFX Group Ltd on September 3, 2024 and sell it today you would lose (415.00) from holding OFX Group Ltd or give up 48.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. OFX Group Ltd
Performance |
| Timeline |
| Meiwu Technology |
| OFX Group |
Meiwu Technology and OFX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and OFX Group
The main advantage of trading using opposite Meiwu Technology and OFX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, OFX 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 OFX Group will offset losses from the drop in OFX Group's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| OFX Group vs. NETGEAR | OFX Group vs. Sphere Entertainment Co | OFX Group vs. Meiwu Technology Co | OFX Group vs. Western Digital |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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