Correlation Between Meiwu Technology and Patterson UTI
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Patterson UTI 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 Patterson UTI 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 Patterson UTI Energy, you can compare the effects of market volatilities on Meiwu Technology and Patterson UTI 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 Patterson UTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Patterson UTI.
Diversification Opportunities for Meiwu Technology and Patterson UTI
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Meiwu and Patterson is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Patterson UTI Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patterson UTI Energy 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 Patterson UTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patterson UTI Energy has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Patterson UTI go up and down completely randomly.
Pair Corralation between Meiwu Technology and Patterson UTI
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the Patterson UTI. In addition to that, Meiwu Technology is 3.34 times more volatile than Patterson UTI Energy. It trades about -0.02 of its total potential returns per unit of risk. Patterson UTI Energy is currently generating about -0.03 per unit of volatility. If you would invest 1,615 in Patterson UTI Energy on September 3, 2024 and sell it today you would lose (775.00) from holding Patterson UTI Energy or give up 47.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. Patterson UTI Energy
Performance |
| Timeline |
| Meiwu Technology |
| Patterson UTI Energy |
Meiwu Technology and Patterson UTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Patterson UTI
The main advantage of trading using opposite Meiwu Technology and Patterson UTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Patterson UTI 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 Patterson UTI will offset losses from the drop in Patterson UTI's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Patterson UTI vs. Nabors Industries | Patterson UTI vs. Precision Drilling | Patterson UTI vs. Noble plc | Patterson UTI vs. Helmerich and Payne |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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