Correlation Between Meiwu Technology and Ryanair Holdings
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Ryanair Holdings 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 Ryanair Holdings 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 Ryanair Holdings PLC, you can compare the effects of market volatilities on Meiwu Technology and Ryanair Holdings 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 Ryanair Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Ryanair Holdings.
Diversification Opportunities for Meiwu Technology and Ryanair Holdings
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meiwu and Ryanair is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Ryanair Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryanair Holdings PLC 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 Ryanair Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryanair Holdings PLC has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Ryanair Holdings go up and down completely randomly.
Pair Corralation between Meiwu Technology and Ryanair Holdings
Considering the 90-day investment horizon Meiwu Technology Co is expected to generate 1.62 times more return on investment than Ryanair Holdings. However, Meiwu Technology is 1.62 times more volatile than Ryanair Holdings PLC. It trades about 0.32 of its potential returns per unit of risk. Ryanair Holdings PLC is currently generating about -0.04 per unit of risk. If you would invest 79.00 in Meiwu Technology Co on August 31, 2024 and sell it today you would earn a total of 21.00 from holding Meiwu Technology Co or generate 26.58% 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. Ryanair Holdings PLC
Performance |
| Timeline |
| Meiwu Technology |
| Ryanair Holdings PLC |
Meiwu Technology and Ryanair Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Ryanair Holdings
The main advantage of trading using opposite Meiwu Technology and Ryanair Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Ryanair Holdings 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 Ryanair Holdings will offset losses from the drop in Ryanair Holdings' long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Ryanair Holdings vs. Allegiant Travel | Ryanair Holdings vs. Azul SA | Ryanair Holdings vs. Alaska Air Group | Ryanair Holdings vs. International Consolidated Airlines |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Global Correlations Find global opportunities by holding instruments from different markets |