Correlation Between Meiwu Technology and Secoo Holding
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and Secoo Holding 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 Secoo Holding 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 Secoo Holding, you can compare the effects of market volatilities on Meiwu Technology and Secoo Holding 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 Secoo Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and Secoo Holding.
Diversification Opportunities for Meiwu Technology and Secoo Holding
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Meiwu and Secoo is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co and Secoo Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Secoo Holding 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 Secoo Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Secoo Holding has no effect on the direction of Meiwu Technology i.e., Meiwu Technology and Secoo Holding go up and down completely randomly.
Pair Corralation between Meiwu Technology and Secoo Holding
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 Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Meiwu Technology Co vs. Secoo Holding
Performance |
| Timeline |
| Meiwu Technology |
| Secoo Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Meiwu Technology and Secoo Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and Secoo Holding
The main advantage of trading using opposite Meiwu Technology and Secoo Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology position performs unexpectedly, Secoo Holding 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 Secoo Holding will offset losses from the drop in Secoo Holding's long position.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| Secoo Holding vs. Kidpik Corp | Secoo Holding vs. Qurate Retail Series | Secoo Holding vs. Natural Health Trend | Secoo Holding vs. Liquidity Services |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |